Annual Report 2023

Statement of the President and CEO

Financial review

Report of the Directors
Consolidated financial statements
Parent company financial statements
Signatures
Auditors' report

Corporate governance

Corporate governance statement
Compensation statement

A look back at the past year – with historically strong earnings

The financial year 2023 was a very good year, the best since the company was listed in 1995. Income before taxes totalled EUR 45.4 M.

The fourth quarter of the year turned out as expected, which means that we could meet our full-year forecast with far better earnings than in 2022. Passenger and cargo volumes remained stable despite a smaller number of vessels, while planned sales prices were achieved. In late October and November, passenger demand weakened temporarily before recovering in December. This was a market trend that affected all operators in our service area. Bunker (vessel fuel) prices have gradually fallen, but are still very high relative to pre-pandemic levels and Russia's war on Ukraine. Furthermore, the troubled state of the world, including the war in Ukraine, has had a small impact on our market.

On August 9, we announced that Viking Line and Gotlandsbolaget would form a joint venture entrusted with the task of developing and providing cruises with the former Birka Stockholm. Meanwhile, it was agreed with Gotlandsbolaget that Viking Line would acquire 50% of the ship for EUR 19 M. On August 23, the joint venture was approved by the Swedish Competition Authority and rigorous work got under way. The work has continued according to plan, and the vessel was rechristened Birka Gotland, with the joint venture taking the name Gotland Alandia Cruises. Service will launch on March 20, 2024. At the same time, Viking Cinderella, which has undergone a major drydocking, will launch service on the Helsinki-Mariehamn–Stockholm route.

The number of passengers who travelled with the company in 2023 totalled 4.9 million, which is a very good result given our reduced capacity, with fewer vessels than the year before. During the summer, there were even periods where there was a lack of capacity. Nearly 1.8 million passengers sailed during the period June–August, and many departures during the summer holiday season sold out well in advance. Viking Grace and Viking Glory had the biggest passenger increase during the year, on the Turku–Åland-Stockholm route, with 2,123,647 passengers. Viking Line's market share here was 72%. Viking Glory, which launched service in 2022, still has the appeal of a novelty and is a well-loved vessel. The pairing of Viking Glory and Viking Grace makes for a strong combination on this route.

Starting in 2024, our traffic will fall under the EU's

Emissions Trading System (ETS). This entails a cost burden that we can only partly offset in the medium term with continued energy efficiency work. Fossil-free fuel in a quantity and at a price that are economically viable does not exist. The implementation of a limited-term island exemption from the Emissions Trading System for traffic between Finland and Åland is thus well justified since the transition to fossil-free fuel is not driven by the cost of emission rights but by the supply of alternative fossil-free fuels. We do not intend to lower our ambitions to reduce emissions from our traffic when the island exemption is implemented – on the contrary, we will make use of cost savings to continue our work towards the transition to fossil-free fuel and increased energy efficiency. Viking Line has started to buy emission rights.

To summarize, I can note that the past financial year has been very strong even excluding the income effect of EUR 8.6 M from the sale of Rosella. For 2024, our forecast is earnings on a par with 2023 (excluding Rosella's capital gain) even though the year will be affected by emission rights costs and start-up costs for traffic with Birka Gotland. Our good earnings and post-pandemic recovery in operations enable investments in new environmental technology and innovations.

I would like to extend my warm thanks to our customers and partners for their faith in us and our good collaboration. A big thank you also goes to our engaged personnel, who contributed to our earnings with their fine work.

Jan Hanses, President and CEO Viking Line

Report of the Directors

Sales and earnings

Consolidated sales decreased 0.7% to EUR 491.4 M during the period January 1– December 31, 2023 (EUR 494.7 M January 1–December 31, 2022). For most of the year, the Group provided service with fewer vessels than during 2022. With a comparable number of vessels, sales increased 13.2%. Operating income totalled EUR 55.0 M (EUR 38.3 M). Consolidated income before taxes was EUR 45.4 M (EUR 28.0 M). During the period, Rosella was sold, which had a positive income effect of EUR 8.6 M.

Passenger-related revenue decreased 0.4% to EUR 442.5 M (EUR 444.4 M), while cargo revenue was EUR 45.7 M (EUR 47.4 M) and other revenue was EUR 3.2 M (EUR 2.9 M). The sales contribution was EUR 377.7 M (EUR 377.3 M).

Operating expenses decreased 9.6% to EUR 304.3 M (EUR 336.5 M). Salary and other employment benefit expenses increased 3.6% or EUR 3.7 M, due in part to the reflagging of Viking XPRS. Other operating expenses decreased 15.5% or EUR 35.9 M. The decrease in operating expenses is largely due to lower fuel costs, which decreased 36.9% or EUR 35.6 M.

Fourth quarter results were stable in a volatile market where there is great uncertainty due to the geopolitical and security situation. Consolidated sales decreased 9.9% to EUR 112.2 M during the period October 1–December 31, 2023 (EUR 124.5 M October 1–December 31, 2022). Operating income was EUR 2.7 M (EUR 19.4 M). The sale of Amorella in 2022 had a positive income effect of EUR 15.0 M.

In January and February 2022, the Group received aid for public service obligations from Traficom, the Finnish Transport and Communications Agency, for the Group's vessels on the Turku–Mariehamn/ Långnäs–Stockholm and Mariehamn-Kapellskär routes. In June 2022, the Group received EUR 2.1 M in State aid, which consisted of aid for uncovered fixed costs. The aid is recognized as State aid under other operating revenue.

Information about the Group's financial position and earnings over a five-year period is presented in the section "Five-year review".

Quarterly consolidated income statement

	2023	2023	2023	2023	2022
EUR M	Q4	Q3	Q2	Q1	Q4
SALES	112.2	152.9	132.4	93.9	124.5
Other operating revenue	0.3	0.0	0.1	8.8	15.2
Expenses
Goods and services	26.7	33.1	31.3	22.6	29.4
Salary and other employment benefit expenses	27.5	27.9	28.6	24.5	25.4
Depreciation, amortization and impairment losses	7.1	6.9	6.8	6.7	7.2
Other operating expenses	48.5	49.8	47.8	49.8	58.4
	109.8	117.7	114.5	103.6	120.3
OPERATING INCOME	2.7	35.3	18.0	-0.9	19.4
Financial income	1.3	0.6	0.6	0.3	0.3
Financial expenses	-3.3	-2.3	-3.4	-2.8	-4.0
Share of after-tax income from joint ventures and companies with a participating interest undertaking accounted for using the equity method	1.4	0.6	-1.6	-1.0	0.8
INCOME BEFORE TAXES	2.0	34.2	13.6	-4.4	16.5
Income taxes	-0.3	-6.6	-2.9	0.7	-3.3
INCOME FOR THE PERIOD	1.7	27.6	10.6	-3.7	13.2
Income attributable to: Parent company shareholders	1.7	27.6	10.6	-3.7	13.2
Earnings per share before and after dilution, EUR	0.10	1.60	0.61	-0.21	0.76

Quarterly consolidated statement of comprehensive income

	2023	2023	2023	2023	2022
EUR M	Q4	Q3	Q2	Q1	Q4
INCOME FOR THE PERIOD	1.7	27.6	10.6	-3.7	13.2
Items that may be reclassified to the income statement
Translation differences	1.0	0.7	-1.3	-0.3	-0.5
Items that will not be reclassified to the income statement Changes in the fair value of financial assets at fair value
through other comprehensive income Adjusted balance for companies with a participating	0.3	1.2	-	-	-
interest undertaking in the transition to IFRS 17	-	-	-	-	2.2
Other comprehensive income	1.3	1.9	-1.3	-0.3	1.7
COMPREHENSIVE INCOME FOR THE PERIOD	3.0	29.5	9.3	-4.0	14.9
Comprehensive income attributable to:
Parent company shareholders	3.0	29.5	9.3	-4.0	14.9

Service and market

During the year, the Viking Line Group provided passenger and cargo carrier services using five vessels on the northern Baltic Sea and in the Gulf of Finland. For most of the period, Viking Line provided service with two fewer vessels than in 2022 (Amorella and Rosella).

Viking Grace was dry-docked for the period January 16 to February 12. During this time, the vessel was replaced by Viking Cinderella on the Turku-Mariehamn/Långnäs-Stockholm route. After this, Viking Cinderella returned to its normal day cruise service between Stockholm and Mariehamn.

Rosella operated between Mariehamn and Kapellskär until January 8, after which it was taken out of service. Viking XPRS was out of service for three days in conjunction with its being removed from the Estonian bare-boat register on March 6 and then entered into the Åland Register of Ships. Viking XPRS has sailed under a Finnish flag since March 6. During the summer period, both Gabriella and Viking Cinderella made a number of destination cruises, including to Visby, Sweden's High Coast, Bornholm and Åland.

During the period June 29 to August 6, Viking Cinderella served in tandem with Gabriella on the Helsinki-Mariehamn-Stockholm route, calling at Tallinn. On August 7, Viking Cinderella returned to its normal day cruise service between Stockholm and Mariehamn and also made a number of charter and special cruises, including to Sweden's High Coast and Visby/Ystad.

In 2022, Viking Glory launched service on the Turku-Mariehamn/Långnäs-Stockholm route on March 1 and has served the route in tandem with Viking Grace since then. Amorella terminated its service on the same route on February 28, 2022. Both Viking Glory and Viking Grace were taken out of operation for planned service work in September 2023.

During the comparative period, from January 17 to February 23, 2022, Viking Cinderella served the Turku-Mariehamn/Långnäs-Stockholm route before returning to its normal cruise service between Stockholm and Mariehamn on February 24.

The total number of passengers on the Group's vessels during the report period was 4,897,494 (4,945,564). The Group had a total market share in its service area of approximately 35.1% (37.2%).

Market demand for travel was good from the start of 2023, and the international markets in particular grew compared to 2022. During the autumn, some volatility was noted in market demand, which we believe was mainly an effect of weaker household finances.

The Group's total cargo volume was 125,269 cargo units (117,777). The Group's share of the cargo market was approximately 16.9% (14.7%). Total demand for cargo in our service area decreased compared to the same period in 2022 due to uncertain economic conditions in the region. Nonetheless, the number of cargo units transported by Viking Line increased.

The market share for passenger cars was approximately 28.8% (32.8%). The decrease is largely due to the closing of the short-haul Kapellskär-Mariehamn route.

Financing and cash flow

The Group's non-current interest-bearing liabilities on December 31, 2023, totalled EUR 150.6 M (EUR 186.3 M). The debt/equity ratio was 51.4% compared to 47.2% in 2022.

The Group's cash and cash equivalents at the end of December totalled EUR 85.3 M (EUR 89.0 M). Unutilized credit lines in the Group totalled EUR 0.1 M (EUR 0.1 M). Net cash flow from operating activities was EUR 67.1 M (EUR 28.4 M). Net cash flow from investing activities was EUR -24.5 M (EUR 0.2 M) and net cash flow from financing activities was EUR -46.3 M (EUR -54.1 M).

Most of the Group's loan agreements include loan covenants according to market terms. The financial covenants in the loan agreements consist of minimum requirements for liquidity and solvency and a maximum net financial debt-to-EBITDA ratio.

The dividend restriction set out in one of the Group's loan agreements continues to apply in the event the Group's debt-to-EBITDA ratio exceeds 5.0.

Investments

The Group's investments for the period January 1 to December 31, 2023, totalled EUR 36.9 M (EUR 25.5 M). The Group's total investments represented 7.5% of sales (5.2%).

Viking Line and Gotlandsbolaget formed a joint venture, Gotland Alandia Cruises AB, which is tasked with developing and providing cruises with Birka Gotland between Stockholm-Mariehamn and Stockholm-Mariehamn-Visby. In March 2023, Gotlandsbolaget acquired Birka Stockholm (Birka Gotland) for EUR 38 M. In August 2023, Gotlandsbolaget sold 50% of the vessel to Viking Line for EUR 19 M, which was financed by Viking Line's cash holdings. The vessel has been rechristened Birka Gotland.

Most other investments are attributable to the dry-docking of Viking Grace and cabin upgrades on both Gabriella and Cinderella.

Board of Directors, Group Management and auditors

The Board of Directors consisted of Chairman Jakob Johansson and members Christina Dahlblom, Ulrica Danielsson, Stefan Lundqvist, Andreas Remmer, Gert Sviberg and Peter Wiklöf. The deputy members are Tomas Lindholm, Casper Lundqvist and Fredrik Vojbacke.

The President and CEO of the company is Jan Hanses. Peter Hellgren is the Deputy CEO. Group Management consists of Jan Hanses, Peter Hellgren, Johanna Boijer-Svahnström, Mats Engblom, Henrik Grönvik, Ulf Hagström and Wilhelm Hård af Segerstad.

PricewaterhouseCoopers Oy serves as the company's auditing firm, with Martin Grandell (CGR) serving as Principal Auditor.

Information about related party transactions can be found in Note 6.1 to the consolidated financial statements.

Corporate Governance Statement

Viking Line applies the Finnish Corporate Governance Code, which was approved by the Securities Market Association. The Code is available on the Securities Market Association's website, cgfinland.fi. Viking Line complies with the Code in full and deviations are explained ("comply or explain reporting"). The Corporate Governance Statement for 2023 is published separately. Information about Viking Line's corporate governance is available on Vikingline.com.

Non-financial report

Operations

During the first quarter, Rosella operated between Mariehamn and Kapellskär until January 8, after which it was taken out of service. Viking XPRS was removed from the Estonian bare-boat register on March 6 and entered into the Åland Register of Ships under the Finnish flag.

In 2023, Viking Line and Gotlandsbolaget formed a joint venture, Gotland Alandia Cruises AB, which is tasked with developing and providing cruises with Birka Gotland between Stockholm-Mariehamn and Stockholm-Mariehamn-Visby.

Organization and personnel

The average number of full-time employees in the Group was 2,227 (2,203), of whom 1,682 (1,679) worked for the parent company. Land-based personnel totalled 467 (458) and shipboard personnel totalled 1,760 (1,745). During parts of 2022, some shipboard and land-based personnel were furloughed.

In addition to the Group's own employees, Viking XPRS was crewed by an average of 33 (185) people employed by a staffing company. Since its reflagging under a Finnish flag on March 6, 2023, the vessel is staffed solely with the company's own personnel.

At year-end 2023, the Group had a total 2,401 (2,428) employees, of whom 1,878 (1,927) resided in Finland. The number of employees residing in Sweden was 383 (424). The number of employees residing in Estonia was 124 (70) and the number residing in other countries was 16 (7).

Men made up 58.3% (56.4%) of employees, and women made up 41.7% (43.6%). Women made up 25.2% (23.1%) of employees in foreman positions. The average age of employees was 44.8 (45.7) years old.

Social issues

Viking Line strives to act responsibly in the countries and contexts the company operates in. Viking Line shall always be associated with respect for human rights, equal treatment, good labour conditions, social consideration and sustainable environmental work. The Group has established ethical business principles to promote equality in the workplace.

Viking Line strives to offer employees and suppliers a healthy, safe work environment. Viking Line carries out extensive work to prevent the occurrence of workplace accidents through formal risk assessments and deviation management programmes. Suppliers complete the Group's work safety training programme prior to carrying out work on board the Group's vessels. All of the companies in the Group have occupational health and safety programmes in place in compliance with local laws.

The war in Ukraine has affected the mobility of people, especially refugees, in Viking Line's service area. Viking Line has provided sea crossings for Ukrainian refugees and for relief supplies to Ukraine free of charge.

Respect for human rights

Viking Line supports and respects fundamental human values in accordance with the UN's Universal Declaration of Human Rights. Viking Line does not accept forced or child labour in any form. Viking Line respects the right of employees to join associations and organizations and to participate in trade unions. The basic assumption in all of the Group's recruitment, skills development, promotions and other collaborations is that people are of equal value. Viking Line's values with respect to human rights and labour rights are reflected in the Group's business principles for suppliers, which all suppliers agree to.

Anti-corruption and bribery

Viking Line's policy against bribes prohibits the Group's employees from offering or receiving any kind of benefit whatsoever that can be considered to influence behaviour and from acting in a way that can lead to a conflict of interest. Viking Line shall observe the anti-corruption laws in effect in all business environments, and any cases of corruption and bribery shall be reported.

The Group provides an internal whistleblower channel which employees can use safely and anonymously to report any suspicions of irregularities that are an infringement of public interest and are in certain areas of EU law. All of the Group's employees are also encouraged to report any irregularities.

Environment, safety and security

Viking Line's goal is to reduce the environmentally-related consequences of its business activities. The Group strives to reduce its environmental impact by continuously improving the energy efficiency of its vessels and reducing the generation of emissions and waste. Viking Line strives to increase the share of circular material flows, in which third parties can utilize waste from operations as raw materials for their own production. All of the Group's vessels, its head office and the subsidiary Viking Line Buss Ab are certified in compliance with the ISO 14001 environmental management system. Viking Line's organization and all of its vessels are also certified in compliance with the International Safety Management (ISM) Code, which sets out organizational rules for the safe operation of vessels and pollution prevention.

Viking Line's environmental policy expressly prohibits any discharge of wastewater into the sea. All wastewater generated on board the vessels is pumped ashore to municipal water treatment facilities. The Group's environmental policy emphasizes the sorting, recycling and reuse of solid waste, such as glass, metal, paper and biowaste, to the greatest extent possible. In 2023, 1,475 (1,307) tonnes of organic waste were collected for biogas production.

In 2023, the vessels' greenhouse gas emissions were 204,620 (268,701) tonnes of carbon dioxide, 74 (134) tonnes of sulphur oxides and 2,206 (4,278) tonnes of nitrogen oxides. Emissions are generated mainly as a result of the combustion of fossil fuels for the vessels' propulsion and energy supply.

In 2023, Viking Line's vessels used 41,180 (74,478) tonnes of marine diesel, 27,197 (12,155) tonnes of LNG, and 240,037 (237,737) tonnes of fresh water.

The company is responsible for ensuring that the vessels, their crew and all parts of the land-based organization comply with the regulations in effect for passenger and cargo transport. Maritime authorities have overview of the vessels' safety equipment, fire safety equipment, communication equipment, stability and safety organization. Safety preparedness on board is maintained by a safety organization that undergoes continuous training for their duties. Viking Line also has a safety and crisis management plan that is continuously updated and further developed. The plan is tested on a continuous basis through realistic exercises both on board and on land.

Risk and risk management

Viking Line's operations are exposed to different kinds of risks, which vary in their scope and impact on operations, financial results and the company's ability to meet certain social and environmental objectives. The relevant risks have been classified into four categories: strategic, operational, damage and financial risks.

Strategic risks

Changes in the geopolitical situation, the security situation, and the impact of this on energy prices and inflation, in maritime policy, regulations and other laws, in climate change, in the competition situation and the market trend can have a negative and significant impact on demand for the Group's products and services and on its earnings, cash flow and financial position.

Demand for the company's services and products is also affected by megatrends. For example, increased awareness of climate change and environmental protection can affect the public's view of ferry service. For most of our customers. our operations also constitute a leisure good rather than a utility good, which is substitutable, so consumers can choose other alternatives.

Seasonal fluctuations during the year affect Viking Line's business operations. Third quarter earnings usually account for the largest share of earnings for the year.

Political decisions can change Viking Line's operating conditions with potentially negative consequences for business operations. However, Åland's tax exemption, which enables duty-free sales on board vessels in service to and from the Åland Islands, is permanent. The European Commission's guidelines to promote maritime transport, which enable the net salary system for seafarers, are in effect until further notice.

Finnish maritime transport is governed by environmental regulations in the International Maritime Organization (IMO)'s rules, EU directives, HELCOM recommendations and national laws. We actively monitor the drafting of environmental regulations, advances in environmental technology and the solutions that research provides for compliance with ever more stringent environmental regulations.

As of January 1, 2024, maritime transport is included in the EU Emissions Trading System (ETS) for greenhouse gas (GHG) emissions. ETS is one of the instruments the EU uses to achieve its own climate goals and meet its international commitments in the Paris Agreement. GHG emissions of vessels will gradually be phased into the ETS between 2024 and 2026, after which time all emissions will be included. Starting in 2024, Viking Line Abp will surrender allowances that cover 40% (70% in 2025 and 100% in 2026) of its fleet's verified GHG emissions to the relevant regulatory authority, which is the Finnish Energy Authority. The Finnish parliament has approved the application of the so-called island exemption, which means that emissions generated by traffic between the Finnish mainland and Åland are exempt from the requirement to surrender emission allowances. Significant parts of the traffic on the Turku-Stockholm and Helsinki-Stockholm routes are thus exempt from the ETS. The island exemption will be in effect until December 31, 2030. The price of emission rights is affected by many factors, including a gradual reduction in total emission allowances in the free market, which is built into the ETS. The price may also be affected by various external factors, such as geopolitical or energy policy decisions.

Starting January 1, 2025, the FuelEU Maritime Regulation will apply to European maritime shipping. The regulation is focused on the energy used by vessels, and the intention is to gradually phase out fossil energy while phasing a percentage of renewable or emission-free energy carriers into the European fleet's energy mix. The vessels covered by the regulation shall achieve predetermined improvements in their GHG intensity. Requirements will be raised after each five-year period following a non-linear curve. The requirement is initially a 2% decrease in GHG intensity for the first five-year period compared to the reference year, 2020. Starting in 2050, the GHG intensity of vessels should decrease 80% compared to the reference year. Penalties will be charged to ship owners if there is noncompliance, with the amount determined by the level of the vessel's environmental underperformance. Penalties will increase each year the vessel underperforms, and the size of the penalty could have a significant impact on profitability. Emission-free maritime fuel or technologies that use these fuels are not available today. In practice, the regulation for European maritime shipping entails the use of a mix of bio-based or alternative fuels and fossil fuels. The price and availability of alternative and renewable fuels will be key issues in the future.

Operational risks

The Group's business operations are dependent on functioning logistics and IT systems for both external communication and the day-to-day management of operations. Cyber intrusion, malfunctions and disruptions can cause interruptions in operations and have potential consequences. Cyberattacks are a growing and ever-changing global problem. Disruptions in service or IT communication can have a negative impact on the Group's earnings. Viking Line endeavours to minimize the risk of lengthy unplanned service interruptions by means of continuous vessel maintenance, a well-developed safety and security system, training and regular exercises. Risks in information management are minimized by developing appropriate security systems and alternative working methods as well as efforts to ensure the reliability of computer systems.

Hiring, retaining and developing a skilled labour force are critical to success. The loss of key employees and inability to attract new employees can harm the Group's operations.

Damage risks

Maritime safety and security is guided by our safety and security policy, which has top priority in Viking Line's operations. Through our International Safety Management Code (ISMC) and International Ship & Port Facility Security Code (ISPS) management systems, we work systematically to identify potential risk situations and consequently prevent accidents. Our goal is to continuously improve safety and security.

Viking Line has a zero vision when it comes to different kinds of crime, harassment and disorderly conduct on board. We work on a continuous basis to realize this vision. A group that has worked with these issues meets regularly, while a team of external experts has also been hired.

Viking Line maintains a crisis preparedness plan to prevent and mitigate the consequences of adverse events and crises with serious consequences for passengers, staff, traffic, property, the environment, operations and trust in the company. The crisis preparedness plan is characterized by an effective alert system that quickly establishes the central crisis management organization in the company. In crisis situations, this central crisis management organization works in close cooperation with the relevant government agencies.

Various organizations, companies and specialists are hired as needed to provide support and assistance in the crisis work. Communication, information and crisis support are key aspects of the crisis management organization's work. In order to be effective and maintain stamina despite the physical and mental pressure, the organization undergoes training on a continuous basis. The work of the crisis management organization is aimed at saving lives, avoiding injuries and damage to the environment and property, and ensuring that rescue measures are so effective that operations can return to a normal situation as soon as possible without damaging the company's brand.

The Group's vessels are recognized in the balance sheet at a carrying amount of EUR 435.3 M (EUR 429.6 M). The vessels have hull and machinery insurance plus increased value insurance totalling EUR 675.0 M (EUR 686.0 M). In addition, all vessels have strike/delay insurance, protection and indemnity (P&I) and Passenger Liability Regulation (PLR) insurance.

Financial risks

The Group is also exposed to various financial risks, among them fluctuations in currency exchange rates.

Sales revenue is generated in euros and Swedish kronor. Most of the operating inflow and outflow of cash and cash equivalents consist of euros. Purchase prices of goods for sale and bunker (vessel fuel) are affected by other currencies, especially the US dollar.

Fluctuations in bunker prices have a direct effect on consolidated earnings. To mitigate the risk of increased bunker prices somewhat, on December 31, 2023, the Group had entered into fixed price contracts for bunker purchases that are in effect for the beginning of 2024.

The company's ability to meet the requirements set in existing financial agreements depends on its ability to generate a positive cash flow and earnings from its operations, which depends in part on factors beyond the company's control.

The company's interest-bearing liabilities amounted to EUR 187.3 M on December 31, 2023, 80.6% of which have a variable interest rate. The total variable interest rate consists of the market interest rate plus a margin that is specific to the company. Fluctuations in interest rates can have a negative effect on the company's costs of funding and increase funding costs in the future.

Additional information about the management of financial risks can be found in Note 5.5 to the consolidated financial statements.

Disclosures under the EU's Taxonomy Regulation

Regulation (EU) 2020/852 of the European Parliament and of the Council went into force on January 1, 2022, for two of the six environmental objectives concerning the climate (climate change mitigation and climate change adaptation). On January 1, 2023, the Regulation also went into force for the four remaining environmental objectives: sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. The Taxonomy Regulation established a classification system (taxonomy) for environmentally sustainable economic activities. The taxonomy is a framework for steering capital flows towards investments in sustainable operations; managing financial risks as a result of climate change, natural disasters and social problems; and promoting transparency and long-term engagement in economic operations.

Viking Line discloses information about such environmentally sustainable economic activities as defined in the taxonomy in accordance with the EU's Non-Financial Reporting Directive (NFRD). Viking Line Viking Line discloses information about what proportion of its sales (turnover), capital expenditures (CapEx) and operational expenditures (CapEx) is derived from or related to economic activities considered to be eligible for and compliant with the Taxonomy Regulation and its delegated acts. In order to be in compliance with the taxonomy requirements, the company's economic activities must meet the technical screening criteria, comply with the Do No Significant Harm principle and meet minimum social safeguards.

In 2023, the European Commission published an Environmental Delegated Regulation and a Regulation Amending the Climate Delegated Relegation. In the Climate Delegated Relegation ((EU) 2021/2139), technical screening criteria are established for maritime transport. The technical screening criteria for maritime transport have been developed to include the most recent regulations in the International Maritime Organization's Energy Efficiency Design Index (EEDI Phase 3) and the requirement to reduce greenhouse gas emissions in the FuelEU Maritime Regulation. The updated technical screening criteria include alternative fuels, which were previously left out of the taxonomy, to a greater extent. Alternative fuels play a crucial role in the shipping industry's climate transition, and Viking Line considers the addition to be both welcome and necessary.

Information about conformity with Taxonomy Regulation

Technical screening criteria

Viking Line has identified two economic activities in the taxonomy that are related to the Group's primary operations: Provision of passenger service and goods cargo service by vessel – 6.10 "Sea and coastal freight water transport, vessels for port operations and auxiliary activities" and 6.11 "Sea and coastal passenger water transport". For the financial year 2023, Viking Line has assessed the Group's compliance with the taxonomy requirements for these activities. In its interpretation of the EU's Taxonomy Regulation, the company has identified two of the fleet's vessels – Viking Glory and Viking Grace – as being close to compliance with the taxonomy requirements for activities 6.10 and 6.11. However, based on a detailed review in line with the most recent taxonomy guidance, none of Viking Line's vessels are fully compliant with the taxonomy requirements at present.

Viking Line cannot meet the technical screening criteria at present, although none of the company's vessels is intended for fossil fuel transport, and the Energy Efficiency Design Index (EEDI) voluntarily calculated for Viking Glory and Viking Grace is 10% below the EEDI requirements that entered into force on April 1, 2022. However, Viking Line cannot use the EEDI calculation to demonstrate how energyefficient the vessels are since Viking Glory and Viking Grace, because their non-conventional propulsion systems, are exempt from EEDI and EEXI regulations in accordance with MARPOL Annex VI Regulation 2.

This means that Viking Line cannot report compliance for these two vessels. However, Viking Line believes that greenhouse gas (GHG) intensity of the two vessels is in line with taxonomy requirements since both vessels represent modern technology and are subject to a continuous improvement process.

DNSH and minimal social safeguards

The taxonomy assessment carried out in 2023 involved an evaluation of each DNSH criterion at the Group level. The DNSH criteria include criteria for climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and biological diversity.

In order for Viking Line to run successful operations, nature, the company's carbon footprint and any climate risks are important and are issues at the top of the company's agenda. Concerning climate change adaptation, Viking Line has noted that a change in wind patterns, rising sea levels and storms can affect the company's earnings. During the financial year 2024, Viking Line will carry out an evaluation of climate risks and vulnerabilities as well as an assessment of any adaptation solutions.

Sustainable use and protection of water and marine resources is one of Viking Line's core values, and the company has ensured that its operations have not degraded the water quality of the Baltic Sea. Viking Line's head office and all of its vessels are certified in compliance with the ISO 14001 environmental management system. The company has processes in place to prevent the erosion of biodiversity and pollution. Viking Line also works to minimize any negative effect that its operations have on biodiversity and ecosystems, in part by controlling discharges of ballast water and minimizing noise and vibrations from its vessels.

Viking Line's measures follow the principle of a circular economy, and waste management follows systematic procedures based on the company's waste hierarchy, with a focus on preventive measures. Waste produced in the company's operations is reused, recycled or handled properly; this also includes the handling of black and grey water.

Viking Line has analysed the requirements for pollution prevention and protection of biodiversity. The sulphur content of the fuel used by the company's vessels does not exceed the requirements specified, and sulphur emissions are within the limits specified in the IMO's MARPOL Convention. Two of Viking Line's vessels run on LNG, which means lower carbon dioxide emissions from combustion and essentially zero emissions of sulphur and particulate matter for these vessels. Viking Line complies with relevant laws and regulations, and strives to prevent environmental damage in part through close monitoring and auditing. Viking Line provides a list of hazardous substances on board a vessel throughout its life cycle in compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships and the EU Regulation ((EU) 1257/2013) on the Recycling of Ships.

Viking Line has undertaken to run operations that respect human rights, follow processes to fight corruption and promote fair competition. The company has established a Code of Conduct that describes its expectations to employees and suppliers. Viking Line provides an internal whistleblower channel which employees can use safely and anonymously to report any suspicions of irregularities that are an infringement of public interest and are in certain areas of EU law. Viking Line will also further develop its processes concerning, among other things, due diligence with respect to human rights during the financial year 2024.

Key performance indicators used in the taxonomy

Viking Line reports on two activities, 6.10 "Sea and coastal freight water transport, vessels for port operations and auxiliary activities" and 6.11 "Sea and coastal passenger water transport". As the company interprets it, the descriptions of these operations exclude economic activities that are significant to the Group, such as hotel operations and other on-board sales. The company has thus adopted a relatively cautious position on the Group's operations regarding the scope of the taxonomy. As the company interprets it, activities that are not directly related to or do not facilitate the transport of passengers or goods are considered to be operations not subject to the taxonomy. The company has not included activities related to the bus transport of passengers.

Viking Line has restricted sales (turnover) from activities under 6.10 and 6.11 – in other words, activities subject to the taxonomy – mainly to turnover from ticket sales and from cargo and vehicle sales. The company has thus excluded retail sales and hotel revenue, except in cases where cabins constitute a significant proportion of services sold. Capital expenditure (CapEx) is based on investments following the cash flow principle, which also includes Viking Line's investments in new vessels. Only expenditure directly related to vessels and their maintenance is included in CapEx. Operational expenditure (OpEx) consists primarily of vessel maintenance and repair costs. Only costs directly related to the transport of passengers or goods are included, so salary expenses for employees in service jobs are excluded from OpEx.

In compiling Viking Line's key performance indicators (KPIs), turnover and expenditure items have been taken into account only once to avoid double-counting. Research and development related to vessel technology is carried out mainly by the manufacturers. The Group has no actual expenses for research and development. There have been no changes in how Viking Line compiles its most important KPIs since the financial year 2022.

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities

Financial year N		2023				Substantial Contribution Criteria					DNSH criteria ("Does Not Significantly Harm")
Economic Activities	Code	Turnover	Proportion of Turnover, year N	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Minimum Safeguards	Proportion of Taxonomy-aligned (A.1) or eligible (A.2) turnover, year N-1	Category enabling activity	Category transitional activity
		EUR M	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
			0.0%														0.0%
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)			0.0%														0.0%
Of which enabling			0.0%														0.0%
Of which transitional			0.0%														0.0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Sea and coastal freight water transport, vessels for port operations and auxiliary activities	6.10	52.7	10.7%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								10.9%
Sea and coastal passenger water transport	6.11	53.1	10.8%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								9.5%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		105.8	21.5%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								20.3%
A. Turnover of Taxonomy-eligible activities (A.1+A.2)		105.8	21.5%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								20.3%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities		385.5	78.5%
TOTAL		491.3	100%

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities

Financial year N		2023					Substantial Contribution Criteria						DNSH criteria ("Does Not Significantly Harm")
Economic Activities	Code	Turnover	Proportion of CapEx, year N	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Minimum Safeguards	Proportion of Taxonomy-aligned (A.1) or eligible (A.2) CapEx, year N-1	Category enabling activity	Category transitional activity
		EUR M	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
			0.0%														0.0%
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)			0.0%														0.0%
Of which enabling			0.0%														0.0%
Of which transitional			0.0%														0.0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Sea and coastal freight water transport, vessels for port operations and auxiliary activities	6.10	2.9	9.0%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								49.5%
Sea and coastal passenger water transport	6.11	21.8	68.7%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								43.0%
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-Aligned activities) (A.2)		24.7	77.7%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								92.5%
A. CapEx of Taxonomy eligible activities (A.1+A.2)		24.7	77.7%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								92.5%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities		7.1	22.3%
TOTAL		31.8	100%

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities

Financial year N		2023				Substantial Contribution Criteria							DNSH criteria ("Does Not Significantly Harm")
Economic Activities	Code	Turnover	Proportion of OpEx, year N	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Climate Change Mitigation	Climate Change Adaptation	Water	Pollution	Circular Economy	Biodiversity	Minimum Safeguards	Proportion of Taxonomy-aligned (A.1) or eligible (A.2) OpEx, year N-1	Category enabling activity	Category transitional activity
		EUR M	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
			0.0%														0.0%
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)			0.0%														0.0%
Of which enabling			0.0%														0.0%
Of which transitional			0.0%														0.0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Sea and coastal freight water transport, vessels for port operations and auxiliary activities	6.10	30.0	17.5%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								19.1%
Sea and coastal passenger water transport	6.11	30.0	17.5%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								16.6%
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		60.0	35.0%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								35.7%
A. OpEx of Taxonomy-eligible activities (A.1+A.2)		60.0	35.0%	100.0%	0.0%	0.0%	0.0%	0.0%	0.0%								35.7%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities		111.6	65.0%
TOTAL		171.5	100%

Five-year financial review

The Group	2023	2022	2021	2020	2019

Sales, EUR M	491.4	494.7	258.2	188.8	496.4
Operating income, EUR M	55.0	38.3	32.1	-49.3	17.4
– as % of sales	11.2%	7.7%	12.4%	-26.1%	3.5%
Income before taxes, EUR M	45.4	28.0	28.3	-52.9	13.6
– as % of sales	9.2%	5.7%	11.0%	-28.0%	2.7%
Return on equity (ROE)	11.8%	8.1%	10.5%	-19.7%	4.7%
Return on investment (ROI)	10.9%	7.2%	7.4%	-13.8%	4.8%
Equity/assets ratio	51.4%	47.2%	42.0%	46.4%	50.7%

Debt/equity ratio (gearing)	33.6%	48.2%	62.2%	62.7%	28.1%
Gross capital spending, EUR M	36.9	25.5	168.7	15.0	29.9
– as % of sales	7.5%	5.2%	65.3%	7.9%	6.0%
Average number of employees	2,227	2,203	1,536	1,640	2,632
– of whom shipboard employees	1,760	1,745	1,165	1,243	2,038
– of whom land-based employees	467	458	371	397	594

Salaries etc, EUR M	114.2	110.5	75.9	79.6	122.2

Share-related financial ratios

	2023	2022	2021	2020	2019

Earnings per share, EUR	2.10	1.31	1.97	-3.41	0.87
Equity per share, EUR	18.71	16.92	21.67	15.63	18.92
Dividend/share, EUR*	1.00	0.40	0.00	0.00	0.00
Dividend/earnings	47.7%	30.5%	0.0%	0.0%	0.0%
Dividend/share price	5.3%	3.2%	0.0%	0.0%	0.0%
Price/earnings (P/E) ratio	9	10	6	-5	22
Share price on December 31, EUR	18.85	12.55	11.50	15.90	19.00
Highest share price, EUR	23.20	12.85	19.25	20.00	19.80
Lowest share price, EUR	12.20	11.10	10.20	13.90	13.90
Average share price, EUR	17.56	12.17	14.02	16.39	17.95
Market capitalization, EUR M	325.73	216.86	198.72	171.72	205.20
Number of shares traded	508,955	736,473	639,372	344,598	2,206,985
Percentage of shares traded	2.9%	4.3%	3.7%	3.2%	20.4%
Dividend payment/EUR M*	17.28	6.91	0.00	0.00	0.00
Average number of shares	17,280,000			17,280,000 14,040,000 10,800,000 10,800,000
Number of shares on December 31	17,280,000	17,280,000		17,280,000 10,800,000 10,800,000

* For the financial year 2023, proposed by the Board of Directors for approval by the Annual General Meeting.

Definitions of financial ratios

Return on equity (ROE), %	(Income before taxes – income taxes) / Equity including minority interest (average for the year)
Return on investment (ROI), %	(Income before taxes + interest and other financial expenses) / (Total assets – interest-free liabilities [average for the year])
Equity/assets ratio, %	Equity including minority interest / (Total assets – advances received)
Debt/equity ratio (gearing), %	(Interest-bearing liabilities – cash and cash equivalents) / Equity including minority interest
Earnings per share	(Income before taxes – income taxes +/– minority interest) / Weighted average number of shares
Equity per share	Equity attributable to parent company shareholders / Weighted average number of shares
Dividend/earnings, %	Dividend per share / Earnings per share
Dividend yield, %	Dividend per share / Share price on December 31
Price/earnings (P/E) ratio	Share price on December 31 / Earnings per share

Shares and shareholders

Since July 5, 1995, the shares of Viking Line Abp have been listed on NASDAQ Helsinki. The share capital is EUR 1,816,429.61. The minimum share capital of the company is EUR 720,000.00 and the maximum share capital is EUR 4,800,000.00. Within these limits, share capital may be increased or decreased without amending the Articles of Association. The minimum number of shares is 3,600,000 and the maximum number is 18,000,000. The total number of shares in Viking Line Abp is 17,280,000.

All 17,280,000 shares constitute a single series, in which all shares are of equal value. Each share is equivalent to one vote when voting on motions and candidates at shareholder meetings. However, no shareholder may vote on behalf of more than 1/4 of the shares represented at a shareholder meeting. The company has not issued warrants or bonds. The Board of Directors has not requested authorization from a shareholder meeting to change the share capital, to issue warrants or bonds, or to acquire or sell the company's own shares. The company and its subsidiaries do not own any of their own shares.

Shareholders

At the end of the financial year, the company had 5,388 (5,784) registered shareholders.

	Largest shareholders, December 31, 2023	Number of shares	Percentage of total
1.	Ångfartygs Ab Alfa	2,650,400	15.3%
2.	Skandinaviska Enskilda Banken AB (Publ) Helsingin Sivukonttori (nominee-registered shares)	2,518,224	14.6%
3.	Rederiaktiebolaget Hildegaard	1,777,283	10.3%
4.	Citibank Europe PLC (nominee-registered shares)	1,335,017	7.7%
5.	Lundqvist Ben	664,465	3.8%
6.	Eklund Nils-Erik	625,930	3.6%
7.	Sviberg Marie-Louise	588,136	3.4%
8.	Clearstream Banking S.A. (nominee-registered shares)	431,712	2.5%
9.	Alandia Försäkring Abp	268,464	1.6%
10.	Nordnet Bank AB (nominee-registered shares)	250,584	1.5%

Viking Line Abp's shareholders, by sector	Number of shareholders	Percentage of total	Number of shares	Percentage of total
Companies	154	2.9%	5,203,772	30.1%
Credit institutions and insurance companies	8	0.2%	368,691	2.1%
Public sector entities	1	0.0%	112,336	0.7%
Households	5,049	93.7%	6,589,010	38.1%
Non-profit entities	17	0.3%	41,554	0.2%
Foreign shareholders	151	2.8%	342,052	2.0%
Nominee-registered shares	8	0.1%	4,622,389	26.8%
Not transferred to book-entry securities account system			196	0.0%
Total	5,388	100.0%	17,280,000	100.0%

Financial review

Distribution of share capital	Number of shareholders	Percentage	Number of shares	Percentage
1–99	3,028	56.2%	80,764	0.5%
100–999	1,471	27.3%	400,059	2.3%
1,000–9,999	777	14.4%	1,777,556	10.3%
10,000–99,999	93	1.7%	2,512,573	14.5%
100,000–999,999	15	0.3%	4,227,928	24.5%
1,000,000–	4	0.1%	8,280,924	47.9%

Board and top management shareholdings

The members and deputy members of the Board of Directors, the President and Chief Executive Officer, and the Deputy Chief Executive Officer own or control, in the manner described in Chapter 2, Section 4 of the Finnish Securities Market Act, 4,095,273 shares in the company, equivalent to a voting power of 23.7%. Viking Line applies the provisions of Finland's Securities Market Act on insider information. NASDAQ Helsinki's insider regulations and insider rules under the EU Market Abuse Regulation (MAR).

Trading volume and share price

During the financial year, trading in Viking Line on NASDAQ Helsinki totalled 508,955 shares, which corresponds to 2.9% of shares. The year's highest share price was EUR 23.20 and the lowest was EUR 12.20. On December 29, 2023, the quoted share price was EUR 18.85. The company's market capitalization on that date was EUR 325.7 M.

Events after the balance sheet date

The Board of Directors knows of no events after the balance sheet date that could affect the Year-End Report.

Outlook for the financial year 2024

There continues to be significant uncertainty due to the geopolitical situation and the impact this has on energy prices, inflation, interest rates and currencies as well as the impact these uncertainty factors may have on people's propensity to travel, demand, consumption patterns and costs. In early 2023, Rosella was sold. Provided energy prices remain at current levels and there is a sustained propensity to travel, the Board expects income before taxes in 2024 to be on a par with the figure for 2023 if the EUR 8.6 M capital gain from the sale of Rosella in 2023 is not included.

The Board's proposal on distribution of earnings

According to the balance sheet of Viking Line Abp on December 31, 2023, unrestricted equity totalled EUR 136,840,669.10.

The Board of Directors proposes to the Annual General Meeting that:

A dividend of EUR 1 per share be paid						EUR 17,280,000.00

The remainder should be retained in unrestricted equity EUR 119,560,669.10

There have been no material changes in the company's economic position since the end of the report period. In the Board of Directors' view, the dividend is justified given the requirements that the nature, scope, financing and risks of operations place on Viking Line's equity.

Financial review

Sales (EUR M) Operating income (EUR M)

Equity/assets ratio (%) Gross capital spending (EUR M)

Consolidated financial statements

Consolidated income statement

EUR M	Note	Dec 31, 2023	Dec 31, 2022
SALES	2.2	491.4	494.7
Other operating revenue	2.3	9.1	24.1
Expenses
Goods and services	2.4	113.7	117.4
Salary and other employment benefit expenses	2.5	108.5	104.7
Depreciation, amortization and impairment losses	2.6	27.5	26.5
Other operating expenses	2.7	195.9	231.8
		445.5	480.5
OPERATING INCOME		55.0	38.3
Financial income	5.1	2.8	0.3
Financial expenses	5.1	-11.8	-12.3
Share of after-tax income from joint ventures and
companies with a participating interest undertaking accounted for using the equity method		-0.6	1.7
INCOME BEFORE TAXES		45.4	28.0
Income taxes	3.1	-9.2	-5.3
INCOME FOR THE PERIOD		36.3	22.7

Income attributable to: Parent company shareholders		36.3	22.7
Earnings per share before and after dilution, EUR	5.4	2.10	1.31

Consolidated statement of comprehensive income

EUR M	Dec 31, 2023	Dec 31, 2022
INCOME FOR THE PERIOD	36.3	22.7
Items that may be reclassified to the income statement Translation differences	0.0	-1.9
Items that will not be reclassified to the income statement Changes in the fair value of financial assets at fair value through other comprehensive income Adjusted balance for companies with a participating interest undertaking in the transition to IFRS 17	1.5 -	- 2.2
Other comprehensive income	1.5	0.3
COMPREHENSIVE INCOME FOR THE PERIOD	37.8	23.0
Comprehensive income attributable to: Parent company shareholders	37.8	23.0

Consolidated balance sheet

EUR M	Note	Dec 31, 2023	Dec 31, 2022	Jan 1, 2022
ASSETS			Restated	Restated
Non-current assets
Intangible assets	4.1	5.4	2.8	3.1
Land	4.2	0.5	0.5	0.5
Buildings and structures	4.2	1.6	1.6	1.7
Renovation costs for rented properties	4.2	0.9	1.1	1.5
Vessels	4.2	435.3	429.6	445.2
Machinery and equipment	4.2	2.6	2.3	2.6
Right-of-use assets	4.4	4.7	4.4	5.7
Financial assets recognized at fair value through
other comprehensive income	5.2	0.0	10.6	0.0
Investments accounted for using the equity method		49.8	36.4	36.1
Receivables		0.6	-	4.7
Total non-current assets		501.5	489.2	501.1
Current assets
Inventories	5.3	12.7	14.0	10.0
Income tax assets		0.1	0.1	0.1
Trade and other receivables	5.2	40.1	36.7	26.6
Cash and cash equivalents	5.2	85.3	89.0	114.6
Total current assets		138.3	139.8	151.3
Non-current assets held for sale	4.5	-	2.4	-
TOTAL ASSETS		639.8	631.4	652.3
EQUITY AND LIABILITIES
Equity	5.4
Share capital		1.8	1.8	1.8
Reserves		49.7	49.7	49.7
Translation differences		-3.2	-3.4	-2.2
Retained earnings		275.0	244.3	222.4
Equity attributable to parent company shareholders		323.2	292.4	271.6
Total equity		323.2	292.4	271.6
Non-current liabilities
Deferred tax liabilities	3.2	45.2	36.1	30.9
Interest-bearing liabilities	5.2	150.6	186.3	235.1
Lease liabilities	4.4, 5.2	4.0	4.5	6.2
Other payables		2.3	-	-
Total non-current liabilities		202.1	226.8	272.2
Current liabilities	5.2
Interest-bearing liabilities		36.7	36.7	38.3
Lease liabilities	4.4	2.7	2.4	2.6
Income tax liabilities		0.0	0.0	0.0
Trade and other payables		75.1	73.0	67.5
Total current liabilities		114.5	112.2	108.5
Total liabilities		316.6	339.0	380.7
TOTAL EQUITY AND LIABILITIES		639.8	631.4	652.3

Consolidated cash flow statement

EUR M	Note	Dec 31, 2023	Dec 31, 2022
OPERATING ACTIVITIES
Income for the period		36.3	22.7
Adjustments
Depreciation, amortization and impairment losses		27.5	26.5
Capital gains/losses from non-current assets		-8.9	-13.1
Income from investments in associate companies Other items not included in cash flow		0.6 -0.7	-1.7 -2.8
Interest expenses and other financial expenses		11.2	10.8
Interest income and other financial income		-2.7	-0.3
Dividend income		0.0	0.0
Income taxes		9.2	5.3
Change in working capital
Change in trade and other receivables		-3.4	-11.0
Change in inventories		1.3	-4.0
Change in trade and other payables		4.3	5.8
Interest paid		-10.0	-7.0
Financial expenses paid		-0.3	-3.1
Interest received		2.7	0.3
Financial income received		0.0	0.0
Taxes paid		0.0	0.0
NET CASH FLOW FROM OPERATING ACTIVITIES		67.1	28.4
INVESTING ACTIVITIES
Investments in vessels		-28.8	-14.1
Investments in other intangible assets, property, plant and equipment		-4.5	-0.8
Investments in financial assets recognized at fair value
through other comprehensive income		0.0	-10.6
Investments in holdings accounted for using the equity method		-3.6	-
Divestments of vessels		11.1	18.0
Divestments of other non-current assets		0.2	0.4
Change in non-current receivables		-0.6	5.9
Dividends received from associate companies		1.7	1.4
Dividends received from others		0.0	0.0
NET CASH FLOW FROM INVESTING ACTIVITIES		-24.5	0.2
FINANCING ACTIVITIES	5.2
Increase in loans		-	40.0
Principal payments		-36.8	-91.4
Depreciation of lease liabilities		-2.6	-2.7
Dividends paid		-6.9	-
NET CASH FLOW FROM FINANCING ACTIVITIES		-46.3	-54.1
CHANGE IN CASH AND CASH EQUIVALENTS		-3.7	-25.5
Cash and cash equivalents at the beginning of the period		89.0	114.6
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		85.3	89.0

Statement of changes in consolidated equity

	Equity attributable to parent company shareholders
EUR M	Share capital	Reserves	Translation differences	Retained earnings	Total equity
EQUITY, JAN 1, 2023	1.8	49.7	-3.4	244.3	292.4
Income for the period				36.3	36.3
Translation differences		0.0	0.2	-0.1	0.0
Remeasurement of financial assets recognized at fair value through other comprehensive income		0.0		1.5	1.5
Comprehensive income for the period	-	0.0	0.2	37.6	37.8
Dividend to shareholders				-6.9	-6.9
Transactions with owners of the parent company	-	-	-	-6.9	-6.9
EQUITY, DEC 31, 2023	1.8	49.7	-3.2	275.0	323.2

	Equity attributable to parent company shareholders
EUR M	Share capital	Reserves	Translation differences	Retained earnings	Total equity
EQUITY, JAN 1, 2022	1.8	49.7	-2.2	220.1	269.4
Income for the period				22.7	22.7
Translation differences		0.0	-1.1	-0.8	-1.9
Remeasurement of financial assets recognized at fair value through other comprehensive income					-
Adjusted balance for companies with a participating interest undertaking in the transition to IFRS 17				2.2	2.2
Comprehensive income for the period	-	0.0	-1.1	24.1	23.0
EQUITY, DEC 31, 2022	1.8	49.7	-3.4	244.3	292.4

Notes to the consolidated financial statements

1.Accounting principles		31
	1.1 Company information	31
	1.2 General principles	31
	1.3 Estimates and judgements	31
	1.4 Risks and liquidity	32
	1.5 Principles of consolidation	33
	1.6 Items in foreign currency	33
	1.7 Application of renewed or amended IFRS standards	33
	1.8 Transition to implementing IFRS 17	34
	2.Operating income	36
	2.1 Operating segments	36
	2.2 Sales	37
	2.3 Other operating revenue	38
	2.4 Goods and services	38
	2.5 Compensation to employees	38
	2.6 Depreciation, amortization and impairment losses	39
	2.7 Other operating expenses	39
	2.7.1 Compensation to the auditors	39
3.Taxes		40
	3.1 Income taxes	40
	3.2 Deferred tax assets and liabilities	41
	4.Intangible assets, property, plant and equipment, and leases	41
	4.1 Intangible assets	41
	4.2 Property, plant and equipment	42

4.3 Impairment losses on intangible assets and property, plant and equipment	44
4.4 Leases	45
4.4.1 The Group as lessee	45
4.4.2 The Group as lessor	47
4.5 Non-current assets held for sale	48

Financial review

	5.Capital structure	49
	5.1 Financial income and expenses	49
	5.2 Financial assets and liabilities	49
	5.2.1 Classification and recognition of financial assets and liabilities	49
	5.2.2 Financial assets recognized at fair value through other comprehensive income	50
	5.2.3 Holdings accounted for using the equity method	51
	5.2.4 Non-current receivables	51
	5.2.5 Trade and other receivables	51
	5.2.6 Cash and cash equivalent	52
	5.2.7 Interest-bearing liabilities	53
	5.2.8 Trade and other payables	54
5.3 Inventories		54
5.4 Equity		55
	5.4.1 Earnings per share	55
	5.4.2 Share capital	55
	5.4.3 Funds	55
	5.4.4 Translation differences	55
	5.4.5 Dividend	56
	5.5 Management of financial risks	56
	5.5.1 Foreign exchange risk	56
	5.5.2 Liquidity risk	56
	5.5.3 Interest rate risk	57
	5.5.4 Credit and counterparty risk	57
	5.5.5 Bunker price risk	58
	5.6 Asset management	58
	5.7 Pledged assets and contingent liabilities	58
	6.Other information in the notes	59
	6.1 Related parties	59
	6.1.1 Subsidiaries	59
	6.1.2 Associate companies	60
	6.1.3 Transactions with companies that are controlled by the Group's key individuals in leading positions	61
	6.1.4 Compensation to the Group's key individuals in leading positions	62
	6.2 Litigation and disputes	64
	6.3 Events after the balance sheet date	64

1. Accounting principles

1.1 Company information

The Viking Line Group provides passenger and cargo carrier operations in the northern Baltic Sea service area and in the Gulf of Finland, with the Finnish mainland, Sweden, the Åland Islands (a Swedish-speaking province of Finland) and the three Baltic countries as its main markets. The Group includes the wholly-owned subsidiaries Viking Line Skandinavien AB with its subsidiary Viking Rederi AB, OÜ Viking Line Eesti, Viking Line Finnlandverkehr GmbH and Viking Line Buss Ab. The Group's companies with a participating interest undertaking or associate participating interest undertaking include Alandia Holding Ab, Alandia Försäkring Abp, Gotland Alandia Cruises AB and Rederiaktiebolaget Eckerö. The parent company of the Group is Viking Line Abp, domiciled in Mariehamn, Åland. The shares of the parent company are listed on NASDAQ Helsinki. The registered address of the Head Office is Norragatan 4, AX-22100 Mariehamn, Åland, Finland. The financial statements are available on Vikingline.com and at the Group's Head Office.

These financial statements were approved for publication and signed by the Board of Directors on February 15, 2024, and will be submitted to the Annual General Meeting for adoption.

1.2. General principles

The consolidated financial statements have been prepared in compliance with International Financial Reporting Standards (IFRSs). In drawing them up, the International Accounting Standards (IASs) and IFRSs as well as the interpretations of the Standing Interpretations Committee (SICs) and International Financial Reporting Interpretations Committee (IFRICs) that were in force on December 31, 2023, have been applied. In the Finnish Accounting Act and in the regulations issued on the basis of this Act, "IFRSs" refers to reporting standards that have been adopted for application in the European Community in compliance with the acts of the European Parliament and the European Council.

Changes in IAS and IFRS standards as well as IFRIC interpretations that went into effect during the financial year did not have any material effect on the Group's comparative figures in the financial statements because the company with a participating interest undertaking Alandia Försäkring Abp has begun to apply the IFRS 17 reporting standard. Due to the application of this standard, consolidated equity in the Viking Line Group on December 31, 2022, was adjusted by EUR 2.2 M.

The consolidated financial statements have been prepared on the basis of original costs unless otherwise stated in the accounting principles or notes below.

The auditor has not performed an attestation audit of Viking Line's ESEF annual accounts for 2023, nor is this a requirement.

1.3 Estimates and judgements

In preparing the consolidated financial statements in compliance with IFRS reporting standards, the Management of the company must make judgements and estimates about the future that affect the reported amounts for assets and liabilities, revenue and expenses as well as other information. The judgements and estimates contained in the financial statements are based on the best assessment of Management on the date of the financial statements.

The geopolitical situation, with considerably highly volatile energy prices, affects both the income statement and balance sheet. It is difficult to determine how long energy prices will fluctuate in this manner and what effects this will have on Viking Line's future earnings, financial position and cash flow. The actual outcome may deviate from estimates and judgements made.

The most important area that entails judgements is valuation of the Group's vessels. Market valuations are conducted on a regular basis by external assessors. The vessels' residual values and estimated periods of use are examined yearly and adjusted if they deviate significantly from earlier values.

Until November 22, 2023, the holding in Rederiaktiebolaget Eckerö was reported under financial assets at fair value through other comprehensive income, but since then the holding has been reclassified and is now reported as a company with a participating interest undertaking using the equity method.

In valuing the Group's leases, judgements are made as to how the Group will capitalize on any opportunity to extend the lease period or terminate the lease. Judgements are also made as to what discount rate is to be used in calculating the present value of the Group's lease liability. The size of the Group's lease liabilities and right-of-use assets, as well as payments on its lease liabilities and depreciation of right-of-use assets, is affected by those judgements.

Based on the Management's judgements, there is no need for any significant impairment losses on the income statement in the annual accounts on December 31, 2023.

1.4 Risks and liquidity

The Group's cash and cash equivalents at the end of December 2023 totalled EUR 85.3 M (EUR 89.0 M). Unutilized credit lines in the Group totalled EUR 0.1 M on December 31, 2023 (EUR 0.1 M). Net cash flow from operating activities was EUR 67.1 M (EUR 28.4 M). Net cash flow from investing activities was EUR -24.5 M (EUR 0.2 M) and net cash flow from financing activities was EUR -46.3 M (EUR 54.1 M).

In August 2023, Viking Line and Gotlandsbolaget formed a joint venture entrusted with the task of developing and providing cruises with Birka Gotland between Stockholm-Mariehamn and Stockholm-Mariehamn-Visby. In March 2023, Gotlandsbolaget acquired Birka Stockholm (Birka Gotland) for EUR 38 M. In August 2023, Gotlandsbolaget sold 50 per cent of the vessel to Viking Line for EUR 19 M, which was funded by Viking Line's cash holdings. The vessel has been rechristened Birka Gotland.

During the comparative period, a credit facility of EUR 40.0 M was drawn, and at the same time four loan facilities totalling EUR 33.0 M were repaid. During the comparative period, the State guarantees for the liquidity loans entered into in 2020 were terminated, and as a result Viking Line was released from the restrictions entailed by the terms and conditions of the State guarantees. In the autumn of 2022, the deferred loan payments agreed in 2020–2021 with the State-owned credit financing company Finnvera Abp and Finland Export Credit for the period July 1, 2020–January 31, 2022, totalling EUR 29.8 M were repaid.

Most of the Group's loan agreements include loan covenants according to market terms. The financial covenants in the loan agreements consist of a minimum liquidity requirement and a maximum total net debt-to-EBITDA ratio for the Group. During the period, these loan covenants met the requirements set.

In 2022, the company had an agreement with its financiers on a waiver of the covenant term concerning the maximum total net financial debt-to-EBITDA ratio. During the period, the loan covenant was within the parameters set.

The company's ability to meet the requirements set in existing financial agreements depends on its ability to generate cash flow from its operations, which depends in part on factors that are beyond the company's control. There is a risk, if the geopolitical situation deteriorates and energy prices rise significantly in the same way as in 2022, that the company may not generate sufficient cash flow or obtain additional financing to meet its obligations in accordance with its financial agreements.

To partly offset the risk of higher bunker (vessel fuel) prices, on December 31, 2023, the Group had fixed price agreements entered into for bunker purchases which are in effect until early 2024.

1.5 Principles of consolidation

The consolidated financial statements encompass the parent company, Viking Line Abp, and those subsidiaries which the parent company controls. For subsidiaries controlled by the parent company, the Group has direct or indirect rights to variable returns and can affect returns by exercising its control. Group companies are reported in the consolidated accounts from the time the Group gains control until the time it ceases to have control. All subsidiaries are wholly owned; see Note 6.1.1. The financial statements of Group companies encompass the period January 1–December 31, 2023.

Subsidiaries are reported according to the acquisition method. This means that all assets that have been acquired, liabilities that have been taken over and contingent liabilities are recognized at fair value on the date the business was acquired. All subsidiaries were acquired before the transition to IFRS reporting. These acquisitions have been reported as previously in compliance with Finnish generally accepted accounting principles (GAAP).

Internal business transactions as well as receivables and liabilities are eliminated in the consolidated accounts. The accounting principles of the subsidiaries are adjusted if necessary, so that they correspond to the accounting principles of the Group.

An associate company – a company with an associate participating interest undertaking – is a company over which the investor company has a significant influence. Holdings in an associate company shall be reported using the equity method in the balance sheet. The equity method is an accounting method that entails reporting the investment in a company initially at cost and subsequently adjusting it by the investor company's proportional share of the change in the investee's net assets. The investor company's income subsequently includes the investor company's proportional share of the investee's income, and the investor company's other comprehensive income includes its share of the investee's other comprehensive income.

Viking Line's Abp's shareholding in Rederiaktiebolaget Eckerö has exceeded 20% since November 22, so Rederiaktiebolaget Eckerö has been reported as a company with a participating interest undertaking using the equity method since then. An initial positive income effect of EUR 2.5 M arose in the transition. Rederiaktiebolaget Eckerö's figures for December were not available when Viking Line's year-end financial statements were prepared so the company has not included any share in earnings and considers the impact on Viking Line to be immaterial.

On August 9, 2023, Viking Line and Gotlandsbolaget announced the formation of a joint venture, Gotland Alandia Cruises AB, which is tasked with developing and providing cruises with Birka Gotland. Viking Line has a 50% shareholding in the company, which is thus recognized as a joint venture. Consolidation in the Viking Line Group is reported using the equity method.

State aid received, depending on the nature of it, is recognized as other operating revenue, as employee compensation or as a decrease in advance payments, vessels under construction; see Notes 2.3, 2.5 and 4.2. No State aid was received during the accounting period.

1.6 Items in foreign currency

The consolidated financial statements have been prepared in euros (EUR), which is the parent company's functional currency and financial reporting currency. Business transactions in foreign currencies are recognized in the functional currency of each company according to the exchange rate on the transaction date.

When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR ±0.1 M may occur.

Monetary items in foreign currencies have been translated into euros according to the exchange rates prevailing on the balance sheet date, while non-monetary items have been translated according to the exchange rate on the transaction date. Exchange rate differences that have arisen from translation are recognized in the income statement.

The income statements of foreign subsidiaries have been translated into euros according to monthly average rates, while their balance sheets have been translated at the exchange rates on the balance sheet date. Exchange rate differences that have arisen from translation are recognized in equity and in other comprehensive income. Translation differences that have arisen since the transition to IFRS are recognized as a separate balance sheet item under equity.

1.7 Application of renewed or amended IFRS reporting standards

The Group begins to apply each standard and interpretation from the date it enters into force or from the beginning of the following accounting period, if the initial date of application is a date other than the first day of the accounting period.

Future changes in IAS/IFRS reporting standards and IFRIC interpretations that the EU has approved are not expected to have any material effect on the consolidated financial statements.

1.8 Transition to implementing IFRS 17

On January 1, 2023, the associate company Alandia Försäkring Abp made the transition to reporting under IFRS 17. This note explains what effect that has had on Viking Line's figures. IFRS 17 concerns the reporting of insurance contracts. An insurance company is defined as an agreement in which one party (the issuer) accepts a significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. The key difference between IFRS 17 and the previously applicable standard, IFRS 4, is the valuation of insurance contracts. Previously, measurement was based on historical costs using reasonable assumptions whereas IFRS 17 is based on the current value of future cash flows plus a risk margin. To summarize, the transition to IFRS 17 entails more consistent and detailed accounting for insurance contracts, with a focus on better reflecting the economic content of these contracts and giving investors and other stakeholders greater insight into insurance activities.

It is mainly the balance sheet that is affected by the transition to reporting under IFRS 17. The liability for remaining coverage decreases, with the decrease reflected in both trade receivables and the liability for premiums. Furthermore, the incurred claims liability decreases since collateral requirements are lower under IFRS 17 than in the previous valuation standard.

All in all, it means that Viking Line's opening balance for equity increases EUR 2.2 M. Furthermore, it can be noted that Alandia Försäkring Abp has used the so-called Premium Allocation Approach for all of its insurance contracts. This is justified since the majority of the company's insurance contracts expire in one year or less. The same method can also be used for contracts with a coverage period longer than one year if the amount would not differ materially using the general model (the Building Block Approach). This condition is met given that insurance contracts with a longer coverage period have an even spread of risk over the contract's coverage period. Another requirement that must be met to use the Premium Allocation Approach is that none of the contracts were recognized as onerous at inception.

The table below shows how the change has affected the Viking Line Group.

Financial review

Consolidated balance sheet January 1, 2022

ASSETS

Non-current assets	Dec 31, 2021	Effect of transition to	Jan 1, 2022
		IFRS 17
Intangible assets	3.1		3.1
Land	0.5		0.5
Buildings and structures	1.7		1.7
Renovation costs for rented properties	1.5		1.5
Vessels	445.2		445.2
Machinery and equipment	2.6		2.6
Right-of-use assets	5.7		5.7
Financial assets recognized at fair value through
other comprehensive income	0.0		0.0
Investments accounted for using the equity method	33.9	2.2	36.1
Receivables	4.7		4.7
Total non-current assets	498.8	2.2	501.1
Current assets
Inventories	10.0	0.0	10.0
Income tax assets	0.1	0.0	0.1
Trade and other receivables	26.6	0.0	26.6
Cash and cash equivalents	114.6	0.0	114.6
Total current assets	151.3		151.3
TOTAL ASSETS	650.1	2.2	652.3
EQUITY AND LIABILITIES
Equity
Share capital	1.8		1.8
Reserves	49.7		49.7
Translation differences	-2.2		-2.2
Retained earnings	220.1	2.2	222.4
Equity attributable to parent company shareholders	269.4		271.6
Total equity	269.4	2.2	271.6
Non-current liabilities
Deferred tax liabilities	30.9		30.9
Interest-bearing liabilities	235.1		235.1
Lease liabilities	6.2		6.2
Total non-current liabilities	272.2		272.2
Current liabilities
Interest-bearing liabilities	38.3		38.3
Lease liabilities	2.6		2.6
Income tax liabilities	0.0		0.0
Trade and other payables	67.5		67.5
Total current liabilities	108.5		108.5
Total liabilities	380.7		380.7
TOTAL EQUITY AND LIABILITIES	650.1	2.2	652.3

2. Operating income

2.1 Segment information

Group Management has established operating segments based on the information that is dealt with by the Management. In Viking Line's organization, the vessels are the primary profit centres and the land-based units constitute support functions for the vessels. Both passenger and cargo operations are conducted on the vessels. Operations, financial earnings forecasts and plans are followed up in these areas for all vessels and are assessed from a comprehensive perspective. The vessels also fulfil all aggregation criteria. The Group's operations have thus been divided into two operating segments:

Vessels: comprises direct revenue and expenses including depreciation that is attributable to vessel operations.
Unallocated: mainly comprises unallocated marketing and administrative expenses. Unallocated also includes the subsidiary Viking Line Buss Ab, which has constituted a support function for vessel operations and accounted for less than 10 per cent of consolidated sales, operating income and assets.

Information about revenue from external customers allocated by geographic area is not available. Assets and liabilities by operating segment are not reported to Group Management.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Sales
Vessels	483.3	486.7
Unallocated	8.2	8.1
Total, operating segments	491.5	494.8
Eliminations	-0.1	-0.1
Total sales of the Group	491.4	494.7
Operating income
Vessels	116.1	93.1
Unallocated	-61.1	-54.8
Total operating income of the Group	55.0	38.3

Financial review

2.2 Sales

Sales revenue is recognized in accordance with IFRS 15. The standard provides a five-step model, with the critical point in time for revenue recognition being when the customer is passed control of the good or service sold. Based on specific criteria, revenue is recognized either at one point in time or over time.

Consolidated sales consist of passenger-related revenue, cargo revenue and other sales revenue. Passenger-related revenue consists mostly of sales on board and ticket sales. The bulk of ticket sales is paid in advance before the trip. Most sales on board are paid during the trip. Charter operators and cargo customers are invoiced afterwards.

Sales are calculated on the basis of sales revenue minus discounts and indirect taxes, adjusted for exchange rate differences. The bulk of the Group's sales revenue normally consists of sales of goods and services, where either cash or card is used as the form of payment. Sales are recognized after goods or services have been received by the customer and benefits associated with ownership of goods or performance of services have been transferred to the purchaser and the Group has thus performed what the customer has paid for.

Advance payments are carried in the balance sheet as contract liabilities under other current liabilities; see Note 5.2.8. These consist mostly of prepaid passenger-related sales revenue. Any credit losses or provisions for future estimated credit losses and other decreases in the value of receivables are recognized as expenses in the income statement.

The Group has a customer loyalty programme, in which passengers collect bonus points that can be used to pay for bookings or services on board. Bonus points are recognized as contract liabilities when they are earned, and sales are reduced by the corresponding amount. When points are used or when it is no longer considered likely that they will be used, the liability for these points is reduced and the corresponding amount is recognized as revenue. Contract liabilities are recognized under other current liabilities; see Note 5.2.8.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Passenger-related revenue	442.5	444.4
Cargo revenue	45.7	47.4
Miscellaneous sales revenue	3.2	2.9
Total	491.4	494.7

2.3 Other operating revenue

During the period, Rosella was sold, which had a positive income effect of EUR 8.6 M.

During the comparative period, the Group received aid for public service obligations from Traficom, the Finnish Transport and Communications Agency, for the Group's vessels on the Turku–Mariehamn/ Långnäs–Stockholm and Mariehamn-Kapellskär routes as well as aid for uncovered fixed costs of EUR 2.1 M. The aid is recognized as public aid under other operating revenue. During the comparative period, Amorella was sold and delivered, which had a positive income effect of EUR 15.0 M.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

State aid	0.0	7.8
Rents received on properties	0.1	0.1
Capital gains	8.7	15.2
Insurance claim payments, accidents	0.2	0.8
Miscellaneous other operating revenue	0.2	0.1
Total	9.1	24.1

2.4 Goods and services

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Goods	107.7	111.0
Externally purchased services	5.9	6.4
Total	113.7	117.4

2.5 Compensation to employees

Viking Line has various pension arrangements in the countries where the Group operates. External pension companies are responsible for the legally mandated pension liability in Group companies. All of the Group's pension plans are classified as defined-contribution. Pension premiums are recognized as expenses in the income statement for the accounting period to which they are attributable.

Compensation related to dismissals is recognized among salary and other employment benefit expenses, and outstanding compensation is accounted for among current liabilities in the balance sheet. The President and CEO receives eight months of salary and other members of the Group Management team six months of salary in case of termination by the company. Otherwise the Group has no defined-benefit pension arrangements or other benefits after employment has ceased. The Group has no incentive or bonus systems. No specific pension agreement has been made for Group Management.

The Group receives government restitution from Finland and Sweden related to taxes and social security contributions for shipboard employees in keeping with European Union guidelines. Restitution received has been recognized in the income statement under salary and other employment benefit expenses for the period in which the basis for the restitution and aid arose.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Salaries	114.2	110.5
Expenses of defined-contribution pensions	13.4	12.8
Other payroll overhead	12.5	11.3
	140.1	134.6

Government restitution	-31.6	-30.1
Aid for furloughs	-	0.2
Total	108.5	104.7

Average number of full-time employees	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Shipboard employees	1,760	1,745
Land-based employees	467	458
Total	2,227	2,203

In addition to the Group's own employees, Viking XPRS was crewed until March 6, 2023, by an average of 33 (185) people employed by a staffing company. The expenses for them are recognized among other operating expenses.

Disclosures on compensation to the Group's key individuals in leading positions are found in Note 6.1.4.

2.6 Depreciation, amortization and impairment losses

During the period, the Group acquired 50% of Birka Stockholm for EUR 19 M. The depreciation period for the vessel is 12 years.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022
Depreciation and amortization
Intangible assets	0.4	0.4
Buildings and structures	0.1	0.1
Renovation costs for rented properties	0.3	0.4
Vessels	23.1	21.9
Machinery and equipment	0.7	0.7
Right-of-use assets	2.9	3.0
Total	27.5	26.5
Total depreciation, amortization and impairment losses	27.5	26.5

A description of the Group's depreciation principles is found in Note 4.

2.7 Other operating expenses

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Sales and marketing expenses	19.5	18.4
Washing and cleaning expenses	22.9	21.2
Repairs and maintenance	13.5	10.9
Public port expenses and vessel charges	35.7	37.0
Fuel expenses	61.1	96.6
Miscellaneous expenses	43.2	47.7
Total	195.9	231.8

2.7.1 Compensation to the auditors

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Auditing	0.2	0.1
Audit-related services	0.0	0.0
Tax advice	0.0	0.0
Miscellaneous consulting	0.0	0.0
Total	0.3	0.2

PricewaterhouseCoopers Oy provided non-audit services to entities of the Viking Line Group for a total of EUR 0.1 M during the financial year 2023. These services included audit-related services (EUR 0.0 M), tax advice (EUR 0.0 M) and miscellaneous consulting (EUR 0.0 M).

3. Taxes

3.1 Income taxes

Income taxes in the income statement consist of taxes based on the taxable income for the period, adjustment of taxes for previous periods and deferred taxes.

Taxes based on the taxable income for the period are calculated according to the applicable tax rate in each country. Income taxes are recognized in the income statement except when underlying transactions have been recognized directly in equity and in other comprehensive income, in which case the related tax effects are recognized in equity and in other comprehensive income.

Deferred taxes are calculated for all temporary differences between carrying amount and tax base. The largest temporary differences are attributable to differences between the carrying amount of property, plant and equipment and their value for tax purposes. Deferred taxes are estimated according to the tax rates that were established before the balance sheet date.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Tax for the financial year	0.0	0.0
Tax attributable to previous financial years	0.0	-
Change in deferred taxes and liabilities	9.1	5.3
Total	9.2	5.3
Reconciliation of tax expense in the income statement and taxes estimated according to tax rate in the Group's home country
Income before taxes	45.4	28.0
Taxes estimated according to Finnish tax rate (20.0%)	9.1	5.6
Tax attributable to previous financial years	0.0	-
Tax effect of
divergent tax rates in foreign subsidiaries	0.0	0.0
tax-free revenue from associate companies and joint ventures	-0.3	-0.3
tax-exempt revenue and non-deductible expenses	0.0	0.1
deferred tax, other changes	0.5	0.0
Taxes in the income statement	9.2	5.3

3.2 Deferred tax assets and liabilities

As of December 31, 2023, the Group recognized net deferred tax liabilities of EUR 45.2 M, of which EUR 46.0 M is deferred tax liabilities and EUR 0.8 M is deferred tax assets. A loss recognized in taxation for the financial year 2020 can be deducted from taxable income over 10 years. The remaining portion of this loss was used during the year, and there are no longer any losses to be used against future taxable income.

EUR M

Deferred tax liabilities	Differences between recognized value of fixed assets and their value for tax purposes	Losses recognized in taxation	Other temporary differences	Total
Jan 1, 2023	37.0	-1.1	0.1	36.1
Translation differences	0.0	-	-	0.0
Recognized in income statement	8.0	1.1	0.0	9.1
Recognized directly in equity	-	-	0.0	0.0
Dec 31, 2023	45.1	-	0.2	45.2
Jan 1, 2022	36.7	-5.7	-0.1	30.9
Translation differences	-0.2	-	-	-0.2
Recognized in income statement	0.5	4.6	0.2	5.3
Recognized directly in equity	-	-	0.0	0.0
Dec 31, 2022	37.0	-1.1	0.1	36.1

4. Intangible assets, property, plant and equipment, and leases

4.1 Intangible assets

Intangible assets mainly comprise computer software programmes. These are recognized at their original cost and are amortized on a straight-line basis during their estimated useful life of 5-10 years.

As of January 1, 2024, maritime transport is included in the EU Emissions Trading System (ETS) for greenhouse gas emissions. Viking Line began to purchase emission allowances during the financial year, which were recognized as an intangible asset. On December 31, the company had purchased 18,000 emission allowances, which were valued at market price in the financial accounts.

EUR M	2023	2022

Cost, Jan 1	6.4	6.6
Translation differences	0.0	0.0
Increases	3.2	0.3
Decreases	-	-0.5
Revaluation	-0.1	-
Cost, Dec 31	9.6	6.4
Accumulated amortization, Jan 1	-3.7	-3.5
Translation differences	0.0	0.0
Accumulated amortization on decreases	-	0.2
Amortization for the financial year	-0.4	-0.4
Accumulated amortization, Dec 31	-4.1	-3.7
Carrying amount, Jan 1	2.8	3.1
Carrying amount, Dec 31	5.5	2.8

Intangible assets consist mainly of computer software programmes and emission allowances.

4.2 Property, plant and equipment

Property, plant and equipment are recognized at historical cost less accumulated depreciation and any impairment loss. Cost includes purchase price as well as expenses directly attributable to the asset. The cost of vessels also includes financial expenses during construction. The residual values and estimated useful life of the assets are examined yearly and are adjusted if they deviate substantially from previous values.

The Group's vessels constitute most of its property, plant and equipment. For vessels, an estimated residual value at the end of their useful life is taken into account in calculating depreciation. The vessels are divided into component parts. Depreciation occurs mainly on a straight-line basis over the expected useful life of the parts. For vessels the hull, machinery and other long-term component parts are depreciated on a straight-line basis over 30 years and for used vessels 12 years, while shortterm component parts are depreciated on a straight-line basis over 15 years.

Viking Line's vessels are dry-docked at 2–3 year intervals. Dry-docking expenses are capitalized for each vessel and depreciated until the next planned dry-docking.

Normal expenditures for repairs and maintenance are expensed on a current basis. Expenditures for large-scale renovation projects are capitalized in the balance sheet if it is likely that the future economic benefits associated with the project will flow to the Group. These renovation projects are depreciated together with the asset to which the work is attributable, over its remaining useful life. Renovation projects for vessels whose remaining useful life is less than five years are depreciated over five years.

Capitalized renovation costs for rented properties are depreciated on a straight-line basis. Land is not depreciated. Buildings and motor vehicles are depreciated on a declining balance basis. Other property, plant and equipment are depreciated on a straight-line basis.

Depreciation for property, plant and equipment is calculated according to the following principles:

Vessels 30 years, straight-line Vessels, used 12 years, straight-line Vessels, short-term component parts 15 years, straight-line Vessel dry-docking 2–3 years, straight-line Vessels, machinery and equipment 5–10 years, straight-line Buildings 4–7% of remaining expenditure Structures 10 years, straight-line Renovation costs for rented properties 5–10 years, straight-line Machinery and equipment 5-15 years, straight-line Cars 25% of remaining expenditure

Gains or losses on the sale or transfer of property, plant and equipment are recognized in the income statement.

In January 2023, Viking Line Abp sold and delivered Rosella to the Greek-based Aegean Sea Lines Maritime Company for EUR 11.2 M. The vessel's book value was EUR 2.4 M.

In August 2023, Viking Line Abp acquired 50% of the vessel Birka Stockholm from Gotlandsbolaget for EUR 19 M.

During the comparative period, Amorella was sold and delivered to Corsica Ferries for EUR 19.1 M. The vessel's book value was EUR 3.2 M when it was sold.

Financial review

EUR M	2023	2022
Land
Cost, Jan 1	0.5	0.5
Cost, Dec 31	0.5	0.5

Carrying amount, Jan 1	0.5	0.5
Carrying amount, Dec 31	0.5	0.5
EUR M	2023	2022

Buildings and structures
Cost, Jan 1	5.9	5.9
Translation differences	0.0	0.0
Increases	0.0	-
Decreases	-	0.0
Cost, Dec 31	5.9	5.9
Accumulated depreciation, Jan 1	-4.3	-4.2
Translation differences	0.0	0.0
Accumulated depreciation on decreases	-	0.0
Depreciation for the financial year	-0.1	-0.1
Accumulated depreciation, Dec 31	-4.4	-4.3
Carrying amount, Jan 1	1.6	1.7
Carrying amount, Dec 31	1.6	1.6

EUR M	2023	2022
Renovation costs for rented properties
Cost, Jan 1	11.6	11.8
Increases	0.2	0.0
Decreases	-	-0.3
Cost, Dec 31	11.7	11.6
Accumulated depreciation, Jan 1	-10.5	-10.3
Accumulated depreciation on decreases	-	0.3
Depreciation for the financial year	-0.3	-0.4
Accumulated depreciation, Dec 31	-10.8	-10.5

Carrying amount, Jan 1	1.1	1.5
Carrying amount, Dec 31	0.9	1.1
EUR M	2023	2022

Vessels
Cost, Jan 1	805.2	905.9
Translation differences	0.1	-5.0
Increases	28.8	14.1
Decreases	-1.9	-109.8
Cost, Dec 31	832.2	805.2
Accumulated depreciation, Jan 1	-375.6	-460.7
Translation differences	-0.1	2.6
Accumulated depreciation on decreases	1.9	104.5
Depreciation for the financial year	-23.1	-21.9
Accumulated depreciation, Dec 31	-396.9	-375.6
Carrying amount, Jan 1	429.6	445.2
Carrying amount, Dec 31	435.3	429.6

EUR M	2023	2022

Machinery and equipment
Cost, Jan 1	10.4	11.8
Translation differences	0.0	0.0
Increases	1.0	0.5
Decreases	-1.6	-1.8
Cost, Dec 31	9.8	10.4
Accumulated depreciation, Jan 1	-8.2	-9.2
Translation differences	0.0	0.0
Accumulated depreciation on decreases	1.6	1.7
Depreciation for the financial year	-0.7	-0.7
Accumulated depreciation, Dec 31	-7.3	-8.2
Carrying amount, Jan 1	2.3	2.6
Carrying amount, Dec 31	2.6	2.3

EUR M	2023	2022

Total property, plant and equipment
Carrying amount, Jan 1	435.0	451.5
Carrying amount, Dec 31	440.9	435.0

4.3 Impairment losses on intangible assets and property, plant and equipment

The carrying amounts of intangible assets and property, plant and equipment are tested regularly to discover any external or internal indications of impairment. If such indications are observed for any asset item, its recoverable amount is estimated. One of the most important areas involving judgements is valuation of the Group's vessels.

The recoverable amount of intangible assets and property, plant and equipment refers to their fair value minus costs to sell or value in use, whichever is higher. When estimating value in use, future cash flows are discounted to their present value on the basis of the discount rates that describe the average pre-tax capital costs of the asset in question. Discount rates shall reflect the time value of money and the risks that the specific asset is subjected to and that have not been taken into account in future cash flows.

An impairment loss is recognized in the income statement if the carrying amount of the asset item exceeds its recoverable amount.

An impairment loss attributable to intangible assets and property, plant and equipment, except for goodwill, is reversed if a change has occurred in the values used in determining the recoverable amount of the asset item. The impairment loss is reversed to the extent that the carrying amount of the asset after reversal does not exceed the carrying amount that the asset would have had if no impairment loss had been recognized, taking into account the depreciation that would then have been carried out.

During the financial year 2023, small impairment losses on property, plant and equipment were taken.

4.4 Leases

4.4.1 The Group as lessee

The Group's leases are recognized in accordance with IFRS 16. Under this standard, all leases are recognized in the lessee's balance sheet apart from a few exceptions and simplification rules.

The Group recognizes a lease liability measured at the present value of the remaining lease charges, discounted by the rate implicit in the lease or the Group's incremental borrowing rate at the lease commencement date. At the same time, a right-of-use asset is recognized at an amount that corresponds to the lease liability. Right-of-use assets are depreciated on a straight-line basis during the lease term. The interest on the lease liability is recognized as a financial expense.

After the lease commencement date, the lease liability is reassessed if there is any change in the lease conditions or in the reassessment of other assumptions. The right-of-use asset is recognized after a deduction for accumulated depreciation, taking into account adjustments for any reassessments of the lease liability.

A contract is classified as a lease if it transfers the right to determine the use of an identified asset during a given period in exchange for payment. The lease term is established as the non-cancellable period, including an assessment of the reasonable certainty of any cancellation or extension of the contract in question. Lease charges are discounted using the rate implicit in the contracts or else the lessee's incremental borrowing rate. When contracts include both lease and non-lease components, these are distinguished. The relationship between the components is determined based on an estimated stand-alone price. The lease components are included in leases.

The Group's leases include the leasing of land and parking spaces, premises for sales and other administrative purposes, and machinery and equipment on land and on board the Group's vessels. The leases vary in their lease terms, indexing, renewal and other conditions. The Group has no leases that include residual value guarantees, sale-and-leaseback transactions or stipulated compensation to be paid if the lease is cancelled. The Group did not have any sub-leasing of right-of-use assets during the financial year.

Some of the Group's leases include index adjustments of lease charges. In a lease adjustment, a reassessment is made of the Group's lease liabilities from the date the adjustment takes effect.

EUR M	2023	2022

Right-of-use assets, land
Cost, Jan 1	0.9	1.2
Translation differences	0.0	0.0
Increases	0.0	0.1
Decreases	-0.2	-0.3
Cost, Dec 31	0.8	0.9
Accumulated depreciation, Jan 1	-0.5	-0.4
Translation differences	0.0	0.0
Accumulated depreciation on decreases	0.2	0.1
Depreciation for the financial year	-0.2	-0.2
Accumulated depreciation, Dec 31	-0.5	-0.5
Carrying amount, Jan 1	0.5	0.8
Carrying amount, Dec 31	0.3	0.5

EUR M	2023	2022

Right-of-use assets, buildings and structures
Cost, Jan 1 Translation differences	6.6 0.0	6.9 0.0
Increases	1.9	1.5
Decreases	-0.2	-1.7
Cost, Dec 31	8.3	6.6
Accumulated depreciation, Jan 1	-4.1	-3.0
Translation differences	0.0	0.0
Accumulated depreciation on decreases	1.0	1.0
Depreciation for the financial year	-2.1	-2.2
Accumulated depreciation, Dec 31	-5.2	-4.1
Carrying amount, Jan 1	2.5	3.9
Carrying amount, Dec 31	3.1	2.5
EUR M	2023	2022
Right-of-use assets, vessels (machinery and equipment)
Cost, Jan 1	1.0	0.4
Translation differences	0.0	-
Increases	0.3	0.7
Decreases	-0.1	-0.1
Cost, Dec 31	1.2	1.0
Accumulated depreciation, Jan 1	-0.4	-0.3
Translation differences	0.0	-
Accumulated depreciation on decreases	0.1	0.1
Depreciation for the financial year	-0.2	-0.3
Accumulated depreciation, Dec 31	-0.6	-0.4
Carrying amount, Jan 1	0.6	0.2
Carrying amount, Dec 31	0.6	0.6
EUR M	2023	2022

Right-of-use assets, machinery and equipment (land)
Cost, Jan 1	1.4	1.5
Translation differences	0.0	0.0
Increases	0.2	0.4
Decreases	-0.1	-0.5
Cost, Dec 31	1.5	1.4
Accumulated depreciation, Jan 1	-0.5	-0.6
Translation differences	0.0	0.0
Accumulated depreciation on decreases	0.1	0.5
Depreciation for the financial year	-0.4	-0.4
Accumulated depreciation, Dec 31	-0.8	-0.5
Carrying amount, Jan 1	0.8	0.9
Carrying amount, Dec 31	0.7	0.8
EUR M	2023	2022

Total right-of-use assets
Carrying amount, Jan 1	4.4	5.7
Carrying amount, Dec 31	4.7	4.4

EUR M

Lease liabilities	Dec 31, 2023	Dec 31, 2022
Current lease liabilities	2.7	2.4
Non-current lease liabilities	4.0	4.5
Total	6.7	6.9

	2023	2022
Interest expenses on lease liabilities	0.4	0.5
Depreciation of lease liabilities	2.6	2.7
Cash outflow for leases, total	3.0	3.2

EUR M

Future cash flows for lease liabilities	Total
2023	2.9
2024	2.6
2025	0.7
2026	0.5
2027	0.3
2028 -	0.2
Total	7.2

4.4.2 The Group as lessor

All leases in which the Group is lessor are classified as operational leases since the economic risks and benefits associated with ownership of the underlying asset are not transferred to the lessee. Lease revenue is recognized in the income statement on a straight-line basis over the lease term.

The Group's leases are for the leasing of space in parts of the Group's properties to different businesses. Most leases on properties are in effect until further notice with a period of notice of less than one year. Leases for fixed periods run for between 1 and 4 years, and the leases normally include the option of extending after the end of the lease term. Some leases include index adjustments of rent.

Viking Line Abp also charters the vessel Birka Gotland, in which it has a 50% holding, to the joint venture Gotland Alandia Cruises AB on a five-year contract with an extension option. Gotlandsbolaget has a 50% holding in Gotland Alandia Cruises AB as well as in the vessel Birka Gotland.

EUR M	2023	2022
Lease revenue, operational leases - of which variable lease charges that do not depend on indexing or interest rates	0.4 -0.1	0.1 -
EUR M

Future cash flows for lease revenue		Total
2024		2.3
2025		2.7
2026		2.7
2027		2.7

2028 1.7 2029 - - Total 12.2

Financial review

4.5 Non-current assets held for sale

A non-current asset held for sale is to be classified as held for sale if its carrying amount will be recovered principally through a transaction, under IFRS 5. No depreciation is made from the time an asset is allocated as a non-current asset held for sale. The asset is recognized at the lower of its carrying amount and fair value less cost to sell.

Non-current assets held for sale on December 31, 2022, consisted of Rosella, for which Viking Line Abp signed a sale agreement in 2022. Delivery took place on January 17, 2023.

EUR M	2023	2022

Non-current assets held for sale	-	2.4

5. Capital structure

5.1 Financial income and expenses

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Dividend income from financial assets recognized at fair value
through other comprehensive income	0.0	0.0
Exchange gains	0.1	-
Other financial income	2.7	0.3
Total financial income	2.8	0.3

Interest expenses on financial liabilities recognized at amortized	10.2	4.8
cost Interest expenses on lease liabilities	0.3	0.3

Exchange losses	0.6	1.5
Guarantee commissions and other financial expenses	0.7	5.6
Total financial expenses	11.8	12.3
Total financial income and expenses	-9.0	-12.0

5.2 Financial assets and liabilities

5.2.1 Classification and recognition of financial assets and liabilities

Under IFRS 9, financial assets are classified into the following categories:

recognized at amortized cost,
recognized at fair value through other comprehensive income and
recognized at fair value through profit or loss.

The classification is based on the company's business model for financial asset management and the characteristics of the contractual cash flows from the financial asset.

Financial liabilities are classified according to IFRS 9 as recognized at amortized cost, with a number of exceptions specified in the standard.

Non-current assets and liabilities have an expected maturity longer than one year, while current assets and liabilities have a maturity less than one year.

The Group applies the following hierarchy to determine the fair value of financial assets and liabilities according to various measurement methods:

Level 1: Listed (unadjusted) prices in active markets for identical assets and liabilities.
Level 2: Other measurement methods in which all data that have a significant impact on fair value can be observed either directly or indirectly.
Level 3: Those measurement methods that require judgements by Group Management.

Acquisitions and divestments of financial assets are reported on the settlement date.

EUR M
-------	--

Classification of fair value, financial assets recognized at fair value through other comprehensive income	Dec 31, 2023	Dec 31, 2022
Level 1	-	-
Level 2	-	-
Level 3	0.0	10.6
Financial assets and liabilities by category	Recognized at amortized	Recognized at fair value through other
Financial assets Dec 31, 2023		comprehensive income
Financial assets recognized at fair value through other comprehensive income		0.0
Trade receivables	12.8
Cash and cash equivalents	85.3
Total	98.1	0.0
Financial assets Dec 31, 2022
Financial assets recognized at fair value through other comprehensive income		10.6
Trade receivables	11.1
Cash and cash equivalents	89.0
Total	100.1	10.6
		Recognized at amortized cost
Financial liabilities Dec 31, 2023
Non-current interest-bearing liabilities		150.6
Current interest-bearing liabilities		36.7
Trade payables		26.1
Total		213.4
Financial liabilities Dec 31, 2022
Non-current interest-bearing liabilities		186.3
Current interest-bearing liabilities		36.7
Trade payables		25.2
Total		248.2

5.2.2 Financial assets recognized at fair value through other comprehensive income

The classification of financial assets recognized at fair value through other comprehensive income is based on a business model whose objectives can be achieved by collecting contractual cash flows and selling financial assets.

The Group's holdings of unlisted shares and participations are classified as financial assets recognized at fair value through other comprehensive income. The items in question are long-term strategic investments that are not intended to be sold in the short term.

For other unlisted shares and participations, fair value is determined based on information about transactions recently carried out, the price of similar instruments, external valuation or estimates of expected cash flows.

Changes in fair value are recognized in other comprehensive income and in the fair value reserve under equity. When a sale is made, these changes are transferred from the fair value reserve to retained earnings.

Dividend income from the investments is recognized in the consolidated income statement.

EUR M

Unlisted shares and participations	Dec 31, 2023	Dec 31, 2022
Rederiaktiebolaget Eckerö	-	10.6
Other unlisted shares and participations	0.0	0.0
Total	0.0	10.6

	2023	2022
Financial assets recognized at fair value through other
comprehensive income, Jan 1	10.6	0.0
Increases	2.6	10.6
Decreases	-13.2	-
Change in fair value	0.0	0.0
Financial assets recognized at fair value through other
comprehensive income, Dec 31	0.0	10.6

Income from unlisted shares and participations recognized in the income statement

Dividend income from shares and participations held on Dec 31
that is recognized under financial income	0.0	0.0

5.2.3 Holdings accounted for using the equity method

During the financial year, Viking Line Abp's investment in Alandia Försäkring Abp and Alandia Holding Abp generated income of EUR -1.6 M. Under IAS 28.10, the dividend of EUR 1.7 M received from Alandia Försäkring Abp for the Group only results in a positive cash flow.

Viking Line's Abp's shareholding in Rederiaktiebolaget Eckerö has exceeded 20% since November 22, so Rederiaktiebolaget Eckerö has been recognized as a company with a participating interest undertaking using the equity method since then. An initial positive income effect of EUR 2.5 M arose in the transition. Rederiaktiebolaget Eckerö's figures for December were not available when Viking Line's year-end financial statements were prepared so the company has not included any share in earnings and considers the impact on Viking Line to be immaterial.

5.2.4 Non-current receivables

The Group's non-current receivables at year-end 2023 consisted of a receivable from a former partner. A written debt instrument and a pledge agreement govern the debt relationship, and a monthly repayment plan with instalments to be paid until May 2027 have been drawn up. Interest is charged on the receivable at a market rate.

5.2.5 Trade and other receivables

Trade receivables are recognized at amortized cost according to IFRS 9. The carrying amount of trade and other receivables is considered equal to fair value based on the short-term nature of the items.

For expected credit losses on trade receivables, a loss provision is recognized. Adjustments in the loss provision are recognized in the consolidated income statement. Additional information about the Group's handling of credit losses is found in Note 5.5.4.

Financial review

EUR M	Dec 31, 2023	Dec 31, 2022

Trade receivables	12.8	11.1
Accrued income and prepaid expenses	25.6	22.5
Other receivables	1.7	3.1
Total	40.1	36.7

Accrued income and prepaid expenses
Employee-related items	23.7	18.9
Other accrued income and prepaid expenses	2.0	3.6
Total	25.6	22.5

Trade receivables
Trade receivables	12.9	11.2
Provision for expected credit losses	-0.1	-0.1
Total	12.8	11.1

Provision for expected credit losses, Jan 1	-0.1	-0.1
Provision for expected credit losses, Dec 31	-0.1	-0.1

Age analysis, trade receivables
Not overdue	9.7	9.6
Overdue 1-30 days	1.8	1.4
Overdue more than 30 days	1.3	0.1
Total	12.8	11.1

Trade and other receivables by currency
EUR	35.1	31.2
SEK	4.7	5.4
CHF	0.0	0.1
GBP	0.2	0.0
NOK	-	0.0
USD	0.1	0.0
Total	40.1	36.7

5.2.6 Cash and cash equivalents

Cash and cash equivalents consist of cash and bank accounts, highly liquid fixed income funds and short-term investments whose maturity from the acquisition date is no more than three months. For cash and cash equivalents with a short maturity, the carrying amount is regarded as being equivalent to fair value.

EUR M	Dec 31, 2023	Dec 31, 2022

Funds held in escrow	0.0	0.0
Cash and bank accounts	36.1	64.3
Short-term investments	49.2	24.7
Total	85.3	89.0

5.2.7 Interest-bearing liabilities

The Group has both current and non-current interest-bearing liabilities. All liabilities are denominated in euros. Some of these liabilities have fixed interest rates and some have floating interest rates. The total floating interest rate consists of the market interest rate and a company-specific margin.

Interest-bearing liabilities are initially recognized at fair value based on the amount received. Transaction costs are included in the original carrying amount of financial liabilities. After the acquisition date, the liabilities are carried at amortized cost according to the effective interest method. The carrying amount of interest-bearing liabilities is equivalent to fair value.

EUR M	Dec 31, 2023	Dec 31, 2022

Non-current interest-bearing liabilities
Loans from credit institutions	138.6	172.3
Liabilities to pension companies	12.0	14.0
Total	150.6	186.3
Current interest-bearing liabilities
Loans from credit institutions, principal payments	34.7	34.7
Liabilities to pension companies, repayment	2.0	2.0
Total	36.7	36.7
	2023	2022
Interest-bearing liabilities, Jan 1	223.1	273.5
Cash flow
Borrowing	-	50.0
Principal payments	-36.8	-101.4
Total	-36.8	-51.4
Changes that do not affect cash flow
Valuation at amortized cost, change	1.0	0.9
Interest-bearing liabilities, Dec 31	187.3	223.1
Lease liabilities, Jan 1	6.9	8.8
Cash flow
Depreciation	-2.6	-2.7
Total	-2.6	-2.7
Changes that do not affect cash flow
Translation differences	0.0	-0.1
Increase in lease liabilities	2.5	0.9
Lease liabilities, Dec 31	6.7	6.9

5.2.8 Trade and other payables

Trade payables are recognized at amortized cost in accordance with IFRS 9. The carrying amount of trade and other payables is considered equal to fair value based on the short-term nature of the items.

EUR M	Dec 31, 2023	Dec 31, 2022

Trade payables	26.1	25.2
Accrued expenses and prepaid income	39.6	38.9
Other payables	9.4	8.9
Total	75.1	73.0

Accrued expenses and prepaid income
Employee-related expenses	25.1	24.5
Contract liabilities	11.6	12.4
Other accrued expenses and prepaid income	3.0	2.0
Total	39.6	38.9

	2023	2022
Contract liabilities, Jan 1	12.4	9.3
Increases	11.6	12.4
Decreases	-12.4	-9.3
Contract liabilities, Dec 31	11.6	12.4

Trade and other payables by currency	Dec 31, 2023	Dec 31, 2022
EUR	60.7	60.2
SEK	14.3	12.8
DKK	0.0	-
GBP	0.0	0.0
NOK	0.1	0.0
USD	0.1	0.1
Total	75.1	73.0

Most other payables consist of employee-related items.

5.3 Inventories

Inventories are recognized at the lower of cost using the first in, first out (FIFO) method or a likely net realizable amount.

Based on Group Management's judgements in 2023, no significant impairment losses were charged to the income statement.

EUR M	Dec 31, 2023	Dec 31, 2022

Inventories of goods for sale	11.4	12.2
Stocks of vessel fuel	1.3	1.8
Total	12.7	14.0

Financial review

5.4 Equity

During the comparative year 2022, the company received aid for uncovered fixed costs of EUR 2.1 M, which shall be included in the recalculation of equity under Chap. 2 Sec. 1, Para. 1 in the Finnish Accounting Decree (1339/1997). Under Sec. 11 of the Finnish Act on Temporary Cost Subsidy for Businesses (508/2020), the amount of aid a company is granted decreases unrestricted equity that can be used for the payout of funds in the financial statements prepared for the accounting period then ending unless the company repays the aid it received from the State before the financial statements are adopted.

5.4.1 Earnings per share

Earnings per share is calculated based on 17,280,000 equally weighted shares.

Viking Line has no share option, convertible debenture or share-based incentive programmes, so no dilution can occur.

5.4.2 Share capital

The minimum share capital of Viking Line Abp is EUR 720,000.00 and the maximum share capital is EUR 4,800,000.00. Within these limits, share capital may be increased or decreased without amending the Articles of Association. The minimum number of shares is 3,600,000 and the maximum number is 18,000,000. The share capital in Viking Line Abp is EUR 1,816,429.61. All the shares constitute a single series in which all shares are of equal value. Each share is equivalent to one vote when voting on motions and candidates at shareholder meetings. However, no shareholder may vote on behalf of more than ¼ of the shares represented at a shareholder meeting.

The company has not issued any warrants or bonds. The company and its subsidiaries do not own any of their own shares.

5.4.3 Funds

EUR M	Dec 31, 2023	Dec 31, 2022

Reserves
Legal reserve	0.0	0.0
Share premium reserve	0.0	0.0
Paid-up unrestricted equity fund	49.6	49.6
Fair value reserve	0.0	0.0
Total	49.7	49.7

5.4.4 Translation differences

Translation differences consist of differences that have arisen when consolidating the financial statements of foreign subsidiaries. These differences are recognized in other comprehensive income.

5.4.5 Dividend

For the financial year 2022, a dividend of 40 cents a share was paid, for a total dividend payment of EUR 6.9 M. After the balance sheet date, the Board of Directors proposed that a dividend of EUR 1 per share be paid for the financial year 2023. The dividend to be paid is entered as a liability in the balance sheet since a decision for this is required at the AGM.

Viking Line Abp has no restrictions on dividend payments apart from the dividend payment restriction included in the financing for Viking Glory in the event the Group's debt-to-EBITDA ratio exceeds 5.0. The Group's debt-to-EBITDA ratio is below 5.0, so the dividend restriction does not apply.

5.5 Management of financial risks

In its normal business operations, the Group is exposed to various financial risks. The main financial risks are foreign exchange risk, liquidity risk, interest rate risk, credit and counterparty risk, and bunker price risk. The Board of Directors of the parent company has approved a policy document for the Group's financing and management of financial risks. The Group's financial position and risk exposure are reported regularly to the Board of Directors.

The Group had no derivative contracts in 2022 or 2023.

5.5.1 Foreign exchange risk

The Group's foreign exchange risk consists of sales and purchases as well as balance sheet items in foreign currencies and net investments in foreign subsidiaries. The impact of changes in currency exchange rates on net investments in foreign subsidiaries is reflected as translation differences in consolidated equity and in other comprehensive income.

The most important foreign currencies for the Group are Swedish kronor (SEK) and American dollars (USD). In the financial year 2023, SEK-denominated sales accounted for about 22% of total consolidated sales. Salary and other employment benefit expenses and purchases denominated in SEK accounted for about 20% of the Group's total salary and other employment benefit expenses and purchases. The USD exchange rate affects the Group's earnings mainly through bunker (vessel fuel) purchases.

The Group's trade and other receivables and its trade and other payables per currency are shown in Notes 5.2.5 and 5.2.8. In addition, the Group has cash and cash equivalents in various currencies. The Group's loans are entirely denominated in euros. The currency position is monitored continuously and the Group endeavours to achieve a matching of the currency flows. When an imbalance between the Group's inflows and outflows of SEK arises, this is managed primarily by a continuous sale of SEK. The Group had no form of currency hedging on the balance sheet date.

A 5 per cent change in the exchange rate of the euro against the Swedish krona on December 31, 2023, would have an estimated effect of EUR +/- 0.3 M (EUR +/- 0.3 M on December 31, 2022) on the Group's income after taxes and equity.

5.5.2 Liquidity risk

Viking Line evaluates and continuously monitors the financing that is required in its business operations in order to always have sufficient funds for day-to-day activities, principal payments and investments. Liquidity risk is also managed through efficient cash management, by ensuring marketpriced financing sources and by dispersing a sufficient portion of financial investments among liquid financial instruments. Vessel investments are financed with long-term credit agreements.

The Group's non-current interest-bearing liabilities amounted to EUR 150.6 M on December 31, 2023 (EUR 186.3 M on December 31, 2022). The Group's cash and cash equivalents amounted to EUR 85.3 M on December 31, 2023 (EUR 89.0 M). Unutilized credit lines in the Group totalled EUR 0.1 M on December 31, 2023 (EUR 0.1 M on December 31, 2022). Information on the dates when interestbearing liabilities fall due for payment is found in the table below.

Most of the Group's loan agreements include financial loan covenants according to market terms. The financial covenant terms in its loan agreements consist of minimum requirements for liquidity and solvency (equity/assets ratio) and a maximum net debt-to-EBITDA ratio.

The company signed an agreement with its financiers on a waiver for the full-year 2022 of the covenant term concerning the maximum total net financial debt-to-EBITDA ratio. All covenant terms were met for the entirety of 2023.

Financial review

EUR M

Future cash flows related to financial liabilities (incl. financial expenses)	Trade payables	Interest bearing liabilities	Total
Jan 1, 2024 - June 30, 2024	26.1	23.5	49.6
Jul 1, 2024 - Dec 31, 2024		23.0	23.0
Jan 1, 2025 - Dec 31, 2025		37.2	37.2
Jan 1, 2026 - Dec 31, 2026		36.4	36.4
Jan 1, 2027 - Dec 31, 2027		25.1	25.1
Jan 1, 2028 - Dec 31, 2028		22.3	22.3
Jan 1, 2029 -		62.4	62.4
Total	26.1	229.9	256.0

5.5.3 Interest rate risk

The Group's interest-bearing liabilities totalled EUR 187.3 M on December 31, 2023, 80.6% of which have a floating interest rate. The total floating interest rate consists of the market interest rate and a company-specific margin. Fluctuations in interest rates may have a negative effect on the Group's financial expenses and increase financial expenses in the future.

A one percentage point change in the market interest rates on the Group's interest-bearing liabilities with floating interest rates on December 31, 2023, would have an estimated effect of EUR +/-1.2 M (EUR +/-1.4 M on December 31, 2022) on the Group's income after taxes and equity.

5.5.4 Credit and counterparty risk

Credit risk in operational activities is continuously monitored.

Cash is invested in financial instruments that are liquid and exposed to low risk. Investments in financial instruments are made only with counterparties deemed to have good solvency and creditworthiness.

For expected credit losses on the Group's trade receivables, a loss provision is recognized. Adjustments in the provision for credit losses are recognized in the consolidated income statement.

The Group applies the simplified method for recognizing provisions for credit losses in accordance with IFRS 9 so that the Group's provision is recognized at an amount corresponding to its expected credit losses for the remaining maturity of the assets in question. Recognition shall be an objective, probability-weighted estimation, reflect the time value of money and be based on reasonable and supported information about previous events, current conditions and forecasts for future economic conditions.

A write-off of the book value of a financial asset is made when there are no reasonable expectations of repayment. Trade receivables are assessed individually based on overdue payments. Write-offs are recognized in the consolidated income statement.

The balance sheet carrying amount of the Group's trade and other receivables plus financial assets at fair value through other comprehensive income is equivalent to its maximum credit exposure. Credit risk in the Group's trade and other receivables is regarded as low, since these are dispersed among a large number of customers.

The Group had no substantial credit losses during the financial year.

The changes in the Group's expected credit loss provision for trade receivables are presented in Note 5.2.5.

An age analysis of trade receivables can be found in Note 5.2.5.

5.5.5 Bunker price risk

Bunker (vessel fuel) costs are a substantial risk for the Group. Most of the price of the Group's bunker purchases is determined by world market prices for marine diesel and natural gas. Purchases of marine diesel are made in euros. The price of marine diesel for a specific delivery date is determined based on an average of market price listings of Platts Gas oil for the three previous days according to the European Central Bank's USD/EUR reference exchange rates for the same period. The liquefied natural gas (LNG) price is determined based on the market listing for NBP ICIS Heren's average price for the month before delivery. NBP is converted into EUR/MWh using a fixed factor based on the European Central Bank's EUR/GBP rate for the first trading date in the delivery month. No fixed-price agreements were entered into for 2023.

Vessel bunker costs amounted to EUR 59.5 M in 2023 (EUR 94.9 M in 2022), which is equivalent to 12.1% (19.2%) of Group sales. Bunker consumption totalled about 41,180 tonnes of marine diesel and 27,197 tonnes of liquefied natural gas (LNG) in 2023 (74,478 tonnes of marine diesel and 12,155 tonnes of LNG in 2022). The increased use of LNG is due to LNG being used as the main fuel on Viking Grace and Viking Glory throughout 2023. This also entailed a decrease in oil use. The decreased use of marine diesel is also due to service with a smaller number of vessels in 2023 compared to 2022.

A 10 per cent change in the floating price components of LNG on December 31, 2023, and the bunker oil quality used, based on projected bunker consumption in 2024, would have an estimated effect of EUR +/- 4.0 M on the Group's income after taxes and equity.

5.6 Asset management

The Group strives to manage its capital in a way that supports the profitable growth of operations by ensuring sufficient liquidity and capitalization. The objective is to maintain a capital structure that contributes to shareholder value creation and supports the dividend policy. The capital structure shall also provide support and ensure compliance with the company's financial loan covenants, which consist of minimum liquidity and solvency requirements and as well as a maximum total net financial debtto-EBITDA ratio. The management of liquidity, loans and financial investments is handled at the Group level in accordance with the company's Treasury Policy.

The company's Board of Directors assesses the Group's capital structure on a regular basis via the business plan approved by the Board.

5.7 Pledged assets and contingent liabilities

EUR M	Dec 31, 2023	Dec 31, 2022
Contingent liabilities Loans and credit lines for which vessel, vehicle and
chattel mortgages were provided as collateral Other contingent liabilities not included in the balance sheet	187.5	223.2
Covered by site leasehold and chattel mortgages	0.0	0.1
Covered by funds held in escrow	0.0	0.0
Total	187.5	223.4
Assets pledged for own debt
Vessel mortgages	413.0	413.0
Site leasehold mortgages	0.4	0.4
Funds held in escrow	0.0	0.0
Total	413.4	413.4
Other off-balance-sheet liabilities	2.8	3.2

In addition to the capital injection, Alandia Holding Ab has taken a loan to finance the purchase of the shares in Alandia Försäkring Abp. To the extent Alandia Holding needs liquid assets to make principal payments, Viking Line Abp has undertaken, through a shareholder agreement, to provide liquid assets commensurate with its shareholding in Alandia Holding Ab.

Gotland Alandia Cruises AB is tasked with developing and providing cruises with Birka Gotland in a profitable way. To the extent collateral and guarantees may be required, Viking Line Abp has undertaken to provide this.

6. Other information in the notes

6.1. Related parties

The Group's related parties include all Group companies, the parent company's Board of Directors and the Group Management plus their close family members and companies controlled by all the above parties.

The members of the parent company's Board of Directors and of the Group Management consist of the Group's key individuals in leading positions.

The Group's internal business transactions that are eliminated in the consolidated accounts are not recognized as transactions with related parties.

6.1.1 Subsidiaries

Subsidiaries are accounted for using the acquisition method; see Note 1.5.

		Holding	Share of voting power
Owned by the parent company, Viking Line Abp	Mariehamn, Finland
Viking Rederi AB	Norrtälje, Sweden	100%	100%
OÜ Viking Line Eesti	Tallinn, Estonia	100%	100%
Viking Line Buss Ab	Mariehamn, Finland	100%	100%
Viking Line Skandinavien AB	Stockholm, Sweden	100%	100%
Viking Line Finnlandverkehr GmbH	Lübeck, Germany	100%	100%
Oy Viking Tours Ruotsinmatkat - Sverigecenter Ab *	Mariehamn, Finland	100%	100%
Oy Ruotsinsatama - Sverigehamnen Ab *	Naantali, Finland	100%	100%
Owned by subsidiaries
Finlandshamnen Stuveri AB	Stockholm, Sweden	100%	100%

* Inactive company

6.1.2 Associate companies

Associate companies and joint ventures are accounted for using the equity method; see Note 1.5.

	Domicile	Holding	Share of voting power
Owned by the parent company, Viking Line Abp
Alandia Försäkring Abp	Mariehamn	19.5%	19.5%
Alandia Holding Ab	Mariehamn	18.3%	18.3%
Rederiaktiebolaget Eckerö	Eckerö	20.1%	20.1%
Joint venture
Gotland Alandia Crusies Ab	Municipality of Gotland	50.0%	50.0%

Summary of financial information for associate companies

	Alandia Försäkring Abp	Alandia Holding Ab	Rederi aktibolaget Eckerö***	Total 2022
Assets	327.8	29.3	162.5	519.6
Liabilities	169.1	15.4	77.1	261.6
Income for the period*	0.5	-0.5	11.2	11.3
Comprehensive income for the period*	0.5	-0.5	11.2	11.3
The Group's share of comprehensive
income**	-2.9	-0.4	2.3	-1.0
Adjustment of the actual results for 2022 *Estimate of Alandia Försäkring Abp's earnings	-1.3	-0.3
**Includes an adjustment in actual figure for 2022
Net assets of associate companies	158.6	13.9	85.4	257.9
The Group's share of net assets	30.9	2.5	17.2	50.6
Effect of reclassification			2.5	2.5
Carrying amount of associate companies	30.5	2.6	19.4	52.6
Dividends received from associate companies	1.7			1.7

***Full-year 2023 results for Rederiaktiebolaget Eckerö have not been received; the figures provided above are for the most recent period available, January 1-September 30, 2023. The Viking Line Group reclassified the holding as a company with a participating interest undertaking as of November 22, 2023, and the effect that the share of earnings would have had on the Viking Line Group is not considered to have any material effect. Therefore no share of earnings has been included in the figures for the Viking Line Group.

Summary of financial information for joint venture	Gotland Alandia Cruises AB	Total 2023
Assets	5.1	5.1
Liabilities	2.8	2.8
		Jan 1-Dec 31, 2023
Income for the period	-3.0	-3.0
Comprehensive income for the period	-3.0	-3.0
The Group's share of comprehensive income	-1.5	-1.5
		2023
Net assets of joint venture	2.2	2.2
The Group's share of net assets	1.1	1.1
Carrying amount of joint venture	-0.5	-0.5

Financial review

Income tax

Balance sheet, summary

Cash and cash equivalents	1.8
Other current assets	-
Current liabilities
Financial liabilities (excluding trade payables)	-
Other current liabilities	2.7
Non-current liabilities
Financial liabilities (excluding trade payables)	-
Other non-current liabilities	-
Comprehensive income, summary
Sales	-
Interest income	-
Depreciation	0.0
Interest expenses

6.1.3 Transactions with companies controlled by the Group's key individuals in leading positions

Transactions with related parties are carried out on market terms. The Group has no loan arrangements, guarantees, contingent liabilities provided/received or other liabilities associated with related parties.

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022
Sale of services to associate companies	0.0	0.0
Sale of services to joint ventures* Purchase of services from associate companies	0.4 0.8	- 2.0

EUR M	Dec 31, 2023	Dec 31, 2022

Amounts receivable from associate companies	0.0	-
Sale of services to joint ventures*	0.3	-
Amounts payable to associate companies	0.0	0.0

*August 29 - December 31, 2023 (joint venture as of August 29, 2023)

6.1.4 Compensation to the Group's key individuals in leading positions

EUR M			Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022
Salaries and other short-term compensation to Group Management			1,375,182	1,162,343
Total			1,375,182	1,162,343
Compensation and other benefits, 2023, EUR	Base salary/ Board fee	Other benefits	Statutory pension expenses	Total
Ben Lundqvist, Chairman of the Board until April 27, 2023	19,000.00			19,000.00
Jakob Johansson, Board member until April 27, 2023 Chairman of the Board starting April 27, 2023	41,000.00			41,000.00
Christina Dahlblom, Board member	35,000.00			35,000.00
Ulrica Danielsson, Deputy Board member until April 27, 2023 Board member starting April 27, 2023	32,000.00			32,000.00
Nils-Erik Eklund, Board member until April 27, 2023	16,000.00			16,000.00
Stefan Lundqvist, Board member	36,000.00			36,000.00
Lars G Nordström, Board member until April 27, 2023	13,000.00			13,000.00
Andreas Remmer, Board member starting April 27, 2023	31,000.00			31,000.00
Gert Sviberg, Deputy Board member until April 27, 2023 Board member starting April 27, 2023	32,000.00			32,000.00
Peter Wiklöf, Board member	33,000.00			33,000.00
Tomas Lindholm, Deputy Board member starting April 27, 2023	7,000.00			7,000.00
Casper Lundqvist, Deputy Board member	6,000.00			6,000.00
Fredrik Vojbacke, Deputy Board member starting April 27, 2023	5,000.00			5,000.00
	306,000.00	0.00	0,00	306,000.00
President and CEO	362,505.60	480.00	60,437.10	423,422.70
Deputy CEO	164,858.62	7,122.73	42,339.11	214,320.46
Other key individuals in leading positions	837,618.66	2,596.00	134,765.42	974,980.08
	1,364,982.88	10,198.73	237,541.63	1,612,723.24
Total	1,670,982.88	10,198.73	237,541.63	1,918,723.24

Financial review

Compensation and other benefits, 2022, EUR	Base salary/ Board fee	Other benefits	Statutory pension expenses	Total
Ben Lundqvist, Chairman of the Board	43,000.00			43,000.00
Christina Dahlblom, Board member	37,000.00			37,000.00
Nils-Erik Eklund, Board member	35,000.00			35,000.00
Jakob Johansson, Board member	37,000.00			37,000.00
Stefan Lundqvist, Board member	37,000.00			37,000.00
Lars G Nordström, Board member	32,000.00			32,000.00
Peter Wiklöf, Board member	37,000.00			37,000.00
Ulrica Danielsson, deputy Board member	10,000.00			10,000.00
Casper Lundqvist, deputy Board member	6,000.00			6,000.00
Gert Sviberg, deputy Board member	8,000.00			8,000.00
	282,000.00	0.00	0.00	282,000.00
President and CEO	340,280.00	842.43	52,908.09	394,030.52
Deputy CEO	160,587.26	7,033.18	38,494.71	206,115.15
Other key individuals in leading positions	651,504.00	2,095.90	103,774.12	757,374.02
	1,152,371.26	9,971.51	195,176.92	1,357,519.69
Total	1,434,371.26	9,971.51	195,176.92	1,639,519.69

Fees are paid for Board work and are determined by the AGM. Reasonable travel costs are reimbursed as invoiced.

The President and CEO and other Group Management members are paid monthly salaries that are reviewed by the Board yearly. The President and CEO also receives the following benefits in kind: telephone benefits and group life insurance coverage, including insurance for medical expenses.

The Group has no incentive or bonus systems.

The Group has only defined-contribution pension plans. Pension expenses refer to the expenses that have affected the year's income. For the President and CEO and other Group Management members, public pension terms and the lowest legal retirement age in effect at each point in time apply.

The President and CEO has a termination notice period of 8 months. The company's Board is entitled to terminate the President and CEO's contract, but the President and CEO will receive 8 months of salary after the termination date. Other Group Management members receive 6 months of salary in case of termination by the company. Otherwise the Group has made no individual agreements on termination-related benefits.

The President and CEO of the company is Jan Hanses. Peter Hellgren has been the Deputy CEO since November 16, 2018.

No benefits other than salaries and short-term compensation were paid to key individuals in leading positions.

Financial review

6.2 Litigation and disputes

Viking Line Abp is involved in a few legal actions and cases whose outcome cannot be predicted, but taking into account the information that is available at present, their outcome is not expected to have any substantial impact on consolidated earnings.

6.3 Events after the balance sheet date

The Board of Directors knows of no events after the balance sheet date that could affect the Year-End Report.

Parent company financial statements

Parent company income statement

EUR M	Note	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022
SALES		493.9	501.3
Other operating revenue	2	9.1	23.4
Operating expenses
Goods and services	3	113.6	117.4
Employee expenses	4	85.9	82.7
Depreciation and amortization	5	23.1	21.4
Other operating expenses	6	229.4	270.3
		452.0	491.8
OPERATING INCOME		51.1	32.9
Financial income and expenses	7	-6.1	-9.2
INCOME BEFORE APPROPRIATIONS AND TAXES		44.9	23.7
Appropriations	8	-38.0	-
Group contribution		0.4	0.2
Income taxes	9	0.0	-
INCOME FOR THE FINANCIAL YEAR		7.3	24.0

Parent company balance sheet

EUR M	Note	Dec 31, 2023	Dec 31, 2022
ASSETS
NON-CURRENT ASSETS
Intangible assets	10	6.4	3.9
Property, plant and equipment	11
Land		0.7	0.7
Buildings and structures Vessels		1.4 415.2	1.4 410.6
Machinery and equipment		1.3	1.2
		418.7	413.9
Shares and participations	12
Shares in Group companies		1.1	1.1
Capital contribution to Group companies		17.6	17.6
Other shares and participations		42.3	38.7
		61.0	57.4
TOTAL NON-CURRENT ASSETS		486.0	475.2
CURRENT AND FINANCIAL ASSETS
Inventories	13	12.7	14.0
Non-current receivables
Other non-current receivables		0.6	-
		0.6	-
Current receivables
Trade receivables		12.4	10.6
Group receivables		0.4	0.6
Other current receivables		1.4	2.6
Accrued income and prepaid expenses	14	22.9	19.0
		37.1	32.9
Cash and cash equivalents		80.9	86.3
TOTAL CURRENT AND FINANCIAL ASSETS		131.4	133.1
TOTAL ASSETS		617.4	608.4

EUR M	Note	Dec 31, 2023	Dec 31, 2022
EQUITY AND LIABILITIES
EQUITY	15
Share capital		1.8	1.8
Unrestricted equity fund Retained earnings		51.8 77.7	51.8 60.6
Income for the financial year		7.3	24.0
TOTAL EQUITY		138.7	138.2
ACCUMULATED APPROPRIATIONS
Accumulated depreciation differences		211.5	173.5
LIABILITIES
Non-current liabilities	16
Liabilities to credit institutions		143.8	178.5
Liabilities to pension companies		12.0	14.0
Accrued expenses and prepaid income		2.3 158.1	- 192.5
Current liabilities
Principal payments to credit institutions		34.7	34.7
Principal payments to pension companies		2.0	2.0
Accounts payable		25.4	24.5
Group liabilities		5.1	1.7
Other current liabilities		8.1	7.8
Accrued expenses and prepaid income	17	33.9 109.2	33.4 104.1

TOTAL LIABILITIES		267.3	296.6
TOTAL EQUITY AND LIABILITIES		617.4	608.4

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022
OPERATING ACTIVITIES
Income for the financial year	7.3	24.0
Adjustments Depreciation and amortization	23.1	21.4
Capital gains from non-current assets	-8.8	-15.0
Other items not included in cash flow	38.1	-
Interest expenses and other financial expenses	9.8	9.3
Interest income and other financial income	-2.7	-0.3
Dividend income	-1.7	-1.4
Group contribution received	-0.4	-0.2
Change in working capital
Change in current receivables	-3.8	-5.8
Change in inventories	1.3	-4.0
Change in non-interest-bearing liabilities	7.4	7.4
Interest paid	-9.7	-6.7
Financial expenses paid	-0.1	-2.9
Interest received	1.6	0.2
Financial income received	1.0	0.2
NET CASH FLOW FROM OPERATING ACTIVITIES	62.3	26.1
INVESTING ACTIVITIES
Investments in vessels	-28.7	-13.5
Investments in other non-current assets	-4.1	-0.6
Investments in shares and participations	-3.6	-10.6
Divestments of vessels	11.1	18.0
Divestments of other non-current assets	0.1	0.2
Change in non-current receivables	-0.6	5.2
Dividends received	1.7	1.4
NET CASH FLOW FROM INVESTING ACTIVITIES	-24.1	0.1
FINANCING ACTIVITIES
Increase in loans	-	40.0
Principal payments	-36.7	-91.3
Dividends paid	-6.9	-
NET CASH FLOW FROM FINANCING ACTIVITIES	-43.6	-51.3
CHANGE IN CASH AND CASH EQUIVALENTS	-5.3	-25.1
Cash and cash equivalents at the beginning of the year	86.3	111.4
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	80.9	86.3

Parent company cash flow statement

Notes to parent company financial statements

1. Accounting principles

1.1 Company information

Viking Line Abp, domiciled in Mariehamn, Åland, is the parent company of the Viking Line Group. The company's Business Identity Code is 0144983-8.

1.2 General

The financial statements of Viking Line Abp have been prepared in compliance with Finnish accounting legislation as well as other national rules and regulations concerning financial statements.

The financial statements of the company encompass the period January 1–December 31, 2023.

1.3 Risks and liquidity

Viking Line Abp's cash and cash equivalents at the end of December 2023 totalled EUR 80.9 M (EUR 86.3 M). Unutilized credit lines in the Group totalled EUR 62.3 M (EUR 26.1 M). Net cash flow from investing activities was EUR -24.1 M (EUR 0.1 M) and net cash flow from financing activities was EUR -43.6 M (EUR -51.3 M).

In August 2023, Viking Line and Gotlandsbolaget formed a joint venture tasked with developing and providing cruises with Birka Gotland between Stockholm-Mariehamn and Stockholm-Mariehamn-Visby. In March 2023, Gotlandsbolaget acquired Birka Stockholm (Birka Gotland) for EUR 38 M. In August 2023, Gotlandsbolaget sold 50 per cent of the vessel to Viking Line for EUR 19 M, which was funded by Viking Line's cash holdings. The vessel has been rechristened Birka Gotland.

As of January 1, 2024, maritime transport is included in the EU Emissions Trading System (ETS) for greenhouse gas emissions. ETS is one of the instruments the EU uses to achieve its own climate goals and meet its international commitments in the Paris Agreement. As of January 1, 2024, Viking Line will be obliged to surrender allowances for its fleet's greenhouse gas (GHG) emissions to the relevant regulatory authority. The first surrendering of allowances must take place by September 30, 2025. To reduce its price risk, Viking Line has begun to purchase emission allowances. Holding allowances ties up capital and has a negative effect on liquidity.

To partly offset the risk of higher bunker (vessel fuel) prices, on December 31, 2023, the Group had fixed price agreements entered into for bunker purchases which are in effect until early 2024.

1.4 Items in foreign currencies

Transactions in foreign currencies are translated at the exchange rate on the transaction date. Receivables and liabilities in foreign currencies are recognized at the exchange rate on the balance sheet date.

1.5 Revenue

The company's revenue is recognized minus discounts, indirect taxes and exchange rate differences.

1.6 Pension expenses

External pension companies are responsible for the legally mandated pension liability in the company. Pension premiums are recognized as expenses in the income statement for the accounting period to which they are attributable.

1.7 Income taxes

Income taxes recognized in the income statement are attributable to income for the year as well as to earlier accounting periods.

1.8 Intangible assets, property, plant and equipment, and amortization/depreciation

Intangible assets and property, plant and equipment are recognized at historical cost less accumulated scheduled depreciation/amortization, which has been calculated on the basis of the probable economic life of the assets. Acquisition cost includes the purchase price and expenses directly attributable to the asset. The acquisition cost of vessels includes financial expenses during their construction period as well. Carrying amounts in the balance sheet also include revaluations on parcels of land, based on appraisals made by external appraisers.

Intangible assets mainly comprise computer software programmes and capitalized renovation expenses for leased properties for which amortization is on a straight-line basis as well as purchased emission allowances, which are tested for impairment.

Vessels, which comprise the largest asset item in the balance sheet, are depreciated on a straightline basis. For vessels, an estimated residual value at the end of their economic life has been taken into account in calculating depreciation. For vessels, the hull, engine and other long-term component parts are depreciated on a straight-line basis over 30 years, while short-term component parts are depreciated on a straight-line basis over 15 years. Used vessels are depreciated on a straight-line basis over 12 years. Additional capital expenditures for vessels are depreciated over the remaining scheduled economic life of the vessels. Renovation projects for vessels whose remaining scheduled economic life is less than five years are depreciated over five years.

Viking Line's vessels are dry-docked at 2-3 year intervals. Dry-docking expenses are capitalized for each vessel and depreciated until the next planned dry-docking.

Normal expenditures for repairs and maintenance are expensed on a current basis. Land is not depreciated. Buildings and motor vehicles are depreciated on a declining balance basis. Other property, plant and equipment are depreciated on a straight-line basis.

Depreciation for property, plant and equipment and amortization for intangible assets are calculated according to the following principles:

Vessels 30 years, straight-line Vessels, used 12 years, straight-line Vessels, short-term component parts 15 years, straight-line Vessels, dry-docking 2–3 years, straight-line Vessels, machinery and equipment 5–10 years, straight-line Buildings 4–7% of remaining expenditure Structures 10 years, straight-line Intangible assets (amortization) 5–10 years, straight-line Machinery and equipment 5–15 years, straight-line Cars 25% of remaining expenditure

Viking Line Abp sold and delivered Rosella to the Greek-based Aegean Sea Lines Maritime Company. The sales price was EUR 11.2 M. The vessel's book value was EUR 2.4 M. Delivery took place on January 17, 2023.

During the comparative period, Amorella was delivered and sold to Corsica Ferries for EUR 19.1 M. The vessel's book value was EUR 3.2 M when it was sold.

1.9 Investments

Viking Line Abp's investments are recognized at acquisition cost. If the value of the shares decreases significantly and over the long term, an impairment loss is recognized in financial expenses.

Financial review

1.10 Inventories

Inventories are recognized at the lower of cost using the first in, first out (FIFO) method or a likely net realizable amount.

1.11 Non-current receivables

Non-current receivables are recognized at acquisition cost.

2. Other operating revenue

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

State aid	-	7.8
Rents received on properties	0.1	0.1
Capital gains	8.6	14.7
Insurance claim payments, accidents	0.2	0.8
Miscellaneous operating revenue	0.2	0.0
Total	9.1	23.4

3. Goods and services

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Purchases during the financial year	107.0	114.9
Change in inventories	0.8	-3.9
Externally purchased services	5.9	6.4
Total	113.6	117.4

4. Employee expenses

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Salaries etc	92.0	89.1
Pension expenses	11.8	11.0
Other employee expenses	4.8	4.2
	108.6	104.3
Government restitution	-22.7	-21.6
Total	85.9	82.7
Average numbers of employees

Shipboard employees	1,355	1,368
Land-based employees	327	311
Total	1,682	1,679

5. Depreciation and amortization

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Intangible assets	0.7	0.8
Buildings and structures	0.1	0.1
Vessels	21.8	20.2
Machinery and equipment	0.5	0.4
Total	23.1	21.4

6. Auditors' fees

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Auditing	0.1	0.1
Audit-related services	0.0	0.0
Tax advice	0.0	0.0
Miscellaneous consulting	0.0	0.0
Total	0.2	0.1

7. Financial income and expenses

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Dividend income from others	1.7	1.4
Interest income from Group companies	-	0.0
Other financial income	2.7	0.3
Total financial income	4.4	1.7

Interest expenses to Group companies	0.3	-
Interest expenses to others	9.7	6.4
Exchange losses	0.5	1.5
Other financial expenses	0.1	2.9
Total financial expenses	10.5	10.8

Total financial income and expenses	-6.1	-9.2

8. Appropriations

EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Difference between scheduled depreciation
and depreciation for tax purposes	38.0	-
Total	38.0	-

9. Income taxes
EUR M	Jan 1, 2023– Dec 31, 2023	Jan 1, 2022– Dec 31, 2022

Income tax on actual operations	0.0	-

10. Intangible assets

EUR M	2023	2022

Intangible rights
Acquisition cost, Jan 1	6.5	6.5
Increases	3.2	0.3
Decreases	-0.2	-0.3
Revaluation	-0.1	-
Acquisition cost, Dec 31	9.5	6.5
Accumulated amortization, Jan 1	-3.7	-3.4
Accumulated amortization on decreases	0.1	0.1
Amortization for the period	-0.4	-0.4
Accumulated amortization, Dec 31	-4.0	-3.7
Book value, Jan 1	2.8	3.1
Book value, Dec 31	5.4	2.8

EUR M	2023	2022

Other long-term expenditures
Acquisition cost, Jan 1	11.6	11.8
Increases	0.2	0.0
Decreases	-	-0.3
Acquisition cost, Dec 31	11.7	11.6
Accumulated amortization, Jan 1	-10.5	-10.3
Accumulated amortization on decreases	-	0.3
Amortization for the period	-0.3	-0.4
Accumulated amortization, Dec 31	-10.8	-10.5
Book value, Jan 1		1.5
	1.1
Book value, Dec 31	0.9	1.1

Total intangible assets 6.4 3.9

11. Property, plant and equipment

EUR M	2023	2022

Land
Acquisition cost, Jan 1	0.5	0.5
Acquisition cost, Dec 31	0.5	0.5
Revaluations, Jan 1	0.2	0.2
Revaluations, Dec 31	0.2	0.2
Book value, Jan 1	0.7	0.7
Book value, Dec 31	0.7	0.7

EUR M	2023	2022
Buildings and structures
Acquisition cost, Jan 1	5.2	5.2
Increases	0.1	-
Decreases	-	0.0
Acquisition cost, Dec 31	5.3	5.2
Accumulated depreciation, Jan 1	-3.8	-3.8
Accumulated depreciation on decreases	-	0.0
Depreciation for the period	-0.1	-0.1
Accumulated depreciation, Dec 31	-3.9	-3.8
Book value, Jan 1	1.4	1.4
Book value, Dec 31	1.4	1.4

EUR M	2023	2022
Vessels
Acquisition cost, Jan 1	790.2	849.4
Increases	28.7	13.5
Decreases	-38.1	-72.7
Acquisition cost, Dec 31	780.8	790.2
Accumulated depreciation, Jan 1	-379.6	-429.1
Accumulated depreciation on decreases	35.8	69.7
Depreciation for the period	-21.8	-20.2
Accumulated depreciation, Dec 31	-365.6	-379.6
Book value, Jan 1	410.6	420.3
Book value, Dec 31	415.2	410.6

EUR M	2023	2022
Machinery and equipment
Acquisition cost, Jan 1	7.2	8.2
Increases	0.6	0.3
Decreases	-0.8	-1.4
Acquisition cost, Dec 31	6.9	7.2
Accumulated depreciation, Jan 1	-5.9	-6.9
Accumulated depreciation on decreases	0.8	1.4
Depreciation for the period	-0.5	-0.4
Accumulated depreciation, Dec 31	-5.6	-5.9
Book value, Jan 1	1.2	1.4
Book value, Dec 31	1.3	1.2
Total property, plant and equipment	418.7	413.9

12. Shares and participations

EUR M	2023	2022
Shares in Group Companies
Acquisition cost, Jan 1	1.1	1.1
Acquisition cost, Dec 31	1.1	1.1

Capital contribution to Group companies
Acquisition cost, Jan 1	17.6	17.6
Acquisition cost, Dec 31	17.6	17.6
Shares in associate companies
Acquisition cost, Jan 1	28.1	28.1
Increases	2.6	-
Reclassification	10.6	-
Acquisition cost, Dec 31	41.3	28.1
Shares in joint ventures
Acquisition cost, Jan 1	-	-
Increases	0.0	-
Capital contribution	1.0	-
Acquisition cost, Dec 31	1.0	-
Other shares and participations
Acquisition cost, Jan 1	10.6	0.0
Increases	-	10.6
Reclassification	-10.6	-
Acquisition cost, Dec 31	0.0	10.6
Total shares and participations	61.0	57.4
13. Inventories
EUR M	Dec 31, 2023	Dec 31, 2022
Stocks of goods for sale	11.4	12.2
Stocks of vessel fuel	1.3	1.8
Total	12.7	14.0
14. Accrued income and prepaid expenses
EUR M	Dec 31, 2023	Dec 31, 2022

Employee-related items	21.2	16.6
Other accrued income and prepaid expenses	1.7	2.4
Total	22.9	19.0

15. Equity

EUR M	2023	2022

Share capital, Jan 1	1.8	1.8
Share capital, Dec 31	1.8	1.8

Paid-up unrestricted equity fund, Jan 1	51.8	51.8
Paid-up unrestricted equity fund, Dec 31	51.8	51.8
Retained earnings, Jan 1	60.6	32.7
Income for the previous financial year	24.0	28.0
Dividend paid to shareholders	-6.9	-
Retained earnings, Dec 31	77.7	60.6

Income for the financial year	7.3	24.0
Total equity	138.7	138.2
Distributable items
Paid-up unrestricted equity fund, Dec 31	51.8	51.8
Retained earnings, Dec 31	77.7	60.6
Cost aid received	-	-2.1
Income for the financial year	7.3	24.0
Total	136.8	134.3

16. Loans that fall due later than after 5 years

EUR M	Dec 31, 2023	Dec 31, 2022

Liabilities to credit institutions	59.0	77.1
Total	59.0	77.1

17. Accrued expenses and prepaid income
EUR M	Dec 31, 2023	Dec 31, 2022

Employee-related items	19.7	19.1
Other accrued expenses and prepaid income	14.2	14.3
Total	33.9	33.4

18. Pledged assets and other contingent liabilities

EUR M	Dec 31, 2023	Dec 31, 2022

Contingent liabilities
Loans and credit lines for which vessel
mortgages were provided as collateral	192.5	229.2
Covered by pledged bank balances	0.0	0.0
Total	192.5	229.2

Assets pledged for own debt
Vessel mortgages	413.0	413.0
Pledged bank balances	0.0	0.0
Total	413.0	413.0
Leasing liabilities
Amounts that fall due during the following accounting period	1.8	1.7
Amounts that fall due later	2.2	3.4
Total	4.0	5.0
Other off-balance-sheet liabilities	2.8	3.2

In addition to the capital injection, Alandia Holding Ab has taken a loan to finance the purchase of the shares in Alandia Försäkring Abp. The plan is to repay the loan with future payments received from Alandia Försäkring Abp. To the extent Alandia Holding needs liquid assets to make principal payments, Viking Line Abp has undertaken, through a shareholder agreement, to provide liquid assets commensurate with its shareholding to Alandia Holding Ab.

Signatures

Signatures of the Board of Directors and the President and CEO

Mariehamn, February 15, 2024

Jakob Johansson Chairman of the Board

Christina Dahlblom Ulrica Danielsson

Stefan Lundqvist Andreas Remmer

Gert Sviberg Peter Wiklöf

Jan Hanses President and CEO

Auditors' note

Our auditors' report was issued today. Mariehamn, February 15, 2024

Pricewaterhouse Coopers Oy Authorized Public Accountants

Martin Grandell, Authorized Public Accountant (CGR)

Auditors' Report

Auditor's Report (Translation of the Swedish Original)

To the Annual General Meeting of Viking Line Abp

Report on the Audit of the Financial Statements

Opinion

In our opinion

the consolidated financial statements give a true and fair view of the group's financial position and financial performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
the financial statements give a true and fair view of the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of the financial statements in Finland and comply with statutory requirements.

Our opinion is consistent with the additional report to the Audit Committee.

What we have audited

We have audited the financial statements of Viking Line Abp (business identity code 0144983-8) for the year ended 31 December 2023. The financial statements comprise:

the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, which include material accounting policy information and other explanatory information
the parent company's balance sheet, income statement, statement of cash flows and notes.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

Phone. +358 20 787 7000, www.pwc.fi Reg. Domicile Helsinki, Business ID 0486406-8

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and to the group companies are in accordance with the applicable law and regulations in Finland and we have

PricewaterhouseCoopers Oy, Authorised Public Accountants, P.O. Box 1015 (Itämerentori 2), FI-00101 HELSINKI

not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The nonaudit services that we have provided are disclosed in note 2.7.1 to the Financial Statements.

Our Audit Approach

Overview

Materiality ● We have applied an overall group audit materiality of € 2,5 million
Scope ● The group audit included the parent company covering the vast majority of the group's net sales, assets and liabilities.
Key Audit Matters ● Valuation of vessels

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole.

Overall group materiality	€ 2,5 million (previous year € 2,6 million)
How we determined it	0,5% of the group's total income
Rationale for the materiality benchmark applied	We chose the total operating revenue as a benchmark when calculating the materiality. In our view, it is the benchmark which users of the financial statements measure the group's performance.

Total operating revenue is a generally accepted benchmark and 0,5 % which is within the range of acceptable quantitative materiality thresholds in auditing standards.

3 (6)

How we tailored our group audit scope

We tailored the scope of our audit, taking into account the structure of Viking Line group and the size, complexity and risks of individual subsidiaries. Based on these criteria we assessed that the audit of the parent company covers the vast majority of the group's net sales, assets and liabilities. In addition, we have conducted certain audit procedures and analytical procedures on group level to identify unexpected movements in the subsidiaries.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Key audit matter in the audit of the group	How our audit addressed the key audit matter
Valuation of vessels
Refer to notes 1.3, 4.2 and 4.3 to the consolidated
financial statements	To ensure that the vessels are not carried at a value in excess of their fair value, we compared their
Vessels are valued based on cost less accumulated	respective carrying value to a valuation performed by an external expert engaged by the group and we
depreciation and possible impairment.	gained an understanding of their valuation methods.
The depreciation expense is based on expected	Our procedures covered all the group's wholly
economic useful lives and the estimated residual value of the vessels, and thereby reflects	owned vessels, i.e. Viking Glory, Viking Grace, Viking XPRS, Gabriella and Viking Cinderella as
management judgement thereon.	well as the vessel that is jointly owned with an external part, i.e. Birka Gotland.
We consider valuation of the vessels to be a key
audit matter in the audit because it is impacted by
management's judgement and because the vessels constitute a material part of the group's assets.

We have no key audit matters to report with respect to our audit of the parent company financial statements.

There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company's or the group's ability

to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Reporting Requirements

Appointment

Authorised public accountants from PricewaterhouseCoopers Oy have been acting, without interruption, as the auditors for Viking Line Abp since the Annual General Meeting 11 February 2010. Authorised public accountant (KHT) Martin Grandell has been nominated by PricewaterhouseCoopers Oy as the auditor of charge since the Annual General Meeting 27 April 2022.

Other Information

The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor's report and the Annual Report is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.

In our opinion

the information in the report of the Board of Directors is consistent with the information in the financial statements
the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Helsinki 15 February 2024

PricewaterhouseCoopers Oy Authorised Public Accountants

Martin Grandell Authorised Public Accountant (KHT)

Corporate governance statement

Corporate governance statement

This corporate governance statement was approved by the Board of Directors of Viking Line Abp on February 15, 2024. The corporate governance statement and the Report of the Directors for the financial year 2023 are published as separate reports.

The parent company, Viking Line Abp, is listed on NASDAQ Helsinki. The wholly owned subsidiaries Viking Line Skandinavien AB together with its subsidiary, Viking Rederi AB, OÜ Viking Line Eesti, Viking Line Finnlandverkehr GmbH and Viking Line Buss Ab belong to the Viking Line Group.

Viking Line applies the Finnish Corporate Governance Code, which was approved by the Securities Market Association and is available on the Securities Market Association's website, Cgfinland.fi. Viking Line complies with the Code in full. Viking Line's corporate governance statement and other information about Viking Line's corporate governance are also available on Vikingline.com.

Annual General Meeting

Viking Line Abp is a public limited company domiciled in Finland which is governed by the Finnish Companies Act and the company's Articles of Association. In compliance with the Companies Act, the Annual General Meeting (AGM) is the company's highest decision-making body, where the owners exercise their influence.

All Viking Line Abp shares constitute a single series, in which all shares are of equal value. Each share is represented by one vote when voting on motions and candidates at shareholder meetings. However, no shareholder may vote on behalf of more than 1/4 of the shares represented at a shareholder meeting. On December 31, 2023, Viking Line Abp had 5,388 (5,786) shareholders.

The AGM decides on matters such as the adoption of the financial statements for the preceding financial year, the distribution of the company's profit or loss and discharge of the Board of Directors as well as the chief executive officer (CEO) from liability for that year. The AGM also elects the Chairman of the Board, the other Board members and auditors and decides on their fees in accordance with the company's compensation policy. The compensation policy describes Viking Line's main principles for compensation for the Board of Directors, the CEO and the Deputy CEO. Proposals for a compensation policy shall be submitted to the Annual General Meeting (AGM) at least every four years. The AGM decided to approve the Board's proposal for a compensation policy on May 13, 2020. The AGM decides on Board fees in accordance with the compensation policy.

The AGM also makes decisions concerning the company's shares and share capital as well as changes in the company's Articles of Association. The minimum share capital of Viking Line Abp is EUR 720,000.00 and the maximum share capital is EUR 4,800,000.00. Within these limits, share capital may be increased or decreased without amending the Articles of Association.

An extraordinary general meeting (EGM) shall be held if the Board of Directors or the AGM has so decided, or if an auditor or owners of at least 1/10 of all shares require this in writing to address a given matter.

In accordance with the Articles of Association, the AGM is held in Mariehamn before the end of June. The latest such meeting took place on April 27, 2023. The next AGM will be held on April 23, 2024.

The invitation to the AGM occurs through an announcement that appears in a newspaper published in the company's place of domicile. This invitation is also published on Vikingline.com. The invitation shall be issued no earlier than three months before the AGM record date and no later than three weeks before the AGM.

In addition to disclosing the items of business that will be discussed at the meeting, the invitation shall include candidates proposed for the Board and their compensation in accordance with the compensation policy as well as candidates proposed for the position of auditor. The invitation shall also include proposals as above submitted by shareholders representing at least 1/10 of shares, provided that any candidates have agreed to serve on the Board and the proposal has been delivered to the company in such a way that it can be included in the invitation. Similar proposals submitted after the invitation has been published shall be published separately.

At the AGM, each shareholder is entitled to ask questions and submit proposals for a decision on matters included in the AGM's agenda. A shareholder is entitled to have a matter considered at the AGM if that person requests it in writing no later than the date indicated by the company on Vikingline.com.

The CEO, the Chairman of the Board, the other Board members and any individuals who are first-time candidates for service as members of the Board shall be present at the AGM. The auditor shall be present at the regular AGM.

Board of Directors

The company is headed by the Board of Directors and by the CEO. In the CEO's absence, the Deputy CEO substitutes for the CEO. The CEO works with a Group Management team appointed by the Board of Directors.

The Board of Directors consists of the Chairman and six members as well as three deputy members. The Chairman, members and deputy members are elected by the AGM for the period until the end of the next AGM. In case the Chairman or a Board member will be absent, he or she has the primary responsibility for nominating the deputy who will be summoned in his/her place. The Articles of Association have not established any special system for the appointment of Board members. The Board has not appointed any committees.

The Board has not appointed any audit committee. Instead, all information related to audits is dealt with directly by the Board.

A person who is elected to the Board must be sufficiently competent for the task and have sufficient time to handle it. Board members or candidates must provide the Board with enough information to assess their competency and independence as well as any changes in this information and present their own assessment of their independence.

Board members represent all shareholders, not only those shareholders who have nominated them. The number of members and the composition of the Board shall enable the effective management of the Board's duties.

The diversity of the Board of Directors' composition supports the company in achieving strategic goals and ensuring that the Board fulfils its duties. The objective is for the Board to include members with knowledge and experience from different industries and duties. It is important that both genders are represented on the Board.

The Board assesses the members' independence annually. The majority of Board members shall be independent of the company. At least two Board members who are independent of the company shall also be independent of the company's significant shareholders. The majority of Board members are independent of the company, and two Board members who are independent of the company are also independent of the company's significant shareholders.

The Board assesses the members' independence annually. The majority of Board members shall be independent of the company, with at least two of them also independent of significant shareholders. All members of the sitting Board are independent of the company, and the majority are also independent of the company's significant shareholders.

The Board has not appointed any nomination committee but instead proposes a candidate to the Board itself, taking into consideration the above principles.

The Board of Directors is in charge of the administration of the company's affairs. It leads and oversees the company's operational management, appoints and dismisses the CEO and the other members of Group Management, approves the company's strategic goals and risk management principles, and ensures that the management system is functioning. The Board establishes the company's vision and values, which are observed in its operations.

The Chairman of the Board is appointed at the regular AGM. The Chairman is responsible for organizing the Board's work and ensures that the Board meets as required. The Group's legal counsel serves as secretary of the Board since April 28, 2023.

At its statutory meeting after the AGM, the Board of Directors adopts rules of procedure for the financial year. These rules of procedure shall contain information about and indicative dates for:

discussion of vision and strategy,
discussion of financial statements, Half-Year Financial Report and Business Reviews for the first and third quarter,
discussion of audit reports,
discussion of the Group's business plan,
appointment of any Board committees and
evaluation of the work of the Board.

In addition, as appropriate, the Board deals with:

other items of business which are incumbent on the Board according to the Companies Act, the Articles of Association and other rules and regulations,
significant investments and divestments and
other items of business submitted by the operational management or by individual Board members.

Corporate governance

The company shall ensure that all Board members receive sufficient information about the company's operations, operating environment and financial position and that new Board members are familiar with the company's operations. At each Board meeting, the CEO provides information about the company's operations. In addition, the Board continuously receives information in the form of regular reports and the minutes of Group Management meetings.

The Board monitors and assesses the company's transactions with related parties, which are defined in accordance with the Finnish Companies Act. The company maintains a register of people and legal entities that constitute the company's close circle in order to identify transactions with related parties and assess the nature and terms of business transactions. Such transactions with related parties that are not part of the company's customary operations or that deviate from normal market terms require a Board decision. In its decision, the Board shall take into account conflict-of-interest provisions since a Board member may not participate in any decision-making on a matter of personal concern.

The Board of Directors elected at the Annual General Meeting on April 27, 2023, consists of Chairman Jakob Johansson and members Christina Dahlblom, Ulrica Danielsson, Stefan Lundqvist, Andreas Remmer, Gert Sviberg and Peter Wiklöf. The deputy members of the Board are Tomas Lindholm, Casper Lundqvist and Fredrik Vojbacke.

During the financial year 2023, a total of 14 Board meetings were held, 9 of which were held after the
AGM. It should be noted that three new Board members were elected at the AGM.

Name	Position	Board meetings	Attendance rate
Ben Lundqvist	Chairman until April 27, 2023	5/5	100%
Nils-Erik Eklund	Member until April 27, 2023	5/5	100%
Lars G. Nordström	Member until April 27, 2023	2/5	40%
New Board from the AGM
Jakob Johansson	Chairman starting April 27, 2023	14/14	100%
Christina Dahlblom	Member	13/14	93%
Ulrica Danielsson	Member starting April 27, 2023	9/9	100%
Stefan Lundqvist	Member	14/14	100%
Andreas Remmer	Member starting April 27, 2023	9/9	100%
Gert Sviberg	Member starting April 27, 2023	9/9	100%
Peter Wiklöf	Member	11/14	79%
Average attendance rate			93%

Members of the Board of Directors

Jakob Johansson

Born in 1981. Board member since 2020. Independent of the company. Not independent of significant shareholders. Jakob Johansson is Managing Director of Maelir AB, which owns more than 20 per cent of all shares in Viking Line Abp. Education and main occupation Master of Laws. Managing Director, Maelir AB. Shareholdings Dec 31, 2023* 3,748,108 shares

Christina Dahlblom

Born in 1978. Board member since 2021. Independent of the company. Independent of significant shareholders. Education and main occupation PhD in Economics. Professor of Practice, Hanken School of Economics, Helsinki. Entrepreneur and leadership coach, Flo Co. Shareholdings Dec 31, 2023* 2,000 shares

Born in 1965. Deputy member since 2013 and member since 2023. Independent

of the company. Independent of significant shareholders.

500 shares

Stefan Lundqvist

Ulrica Danielsson

MBA. Entrepreneur. Shareholdings Dec 31, 2023*

Education and main occupation

Born in 1971. Deputy member since 2001 and member since 2020. Independent of the company. Not independent of significant shareholders. Stefan Lundqvist is employed by Ångfartygs Ab Alfa and Rederi Ab Hildegaard, which each own more than ten per cent of all shares in Viking Line Abp. Education and main occupation MBA. Manager Ship Operations & HR, Ångfartygs Ab Alfa and Rederi Ab Hildegaard. Shareholdings Dec 31, 2023* 181,520 shares

Andreas Remmer

Born in 1974. Board member since 2023. Independent of the company. Independent of significant shareholders. Education and main occupation Master of Laws and Shipping Law. Entrepreneur. Shareholdings Dec 31, 2023* 0 shares

Corporate governance

Gert Sviberg

Born in 1967. Deputy member since 2021 and member since 2023. Independent of the company. Independent of significant shareholders. Education and main occupation Engineering degree (engineer first class). Entrepreneur. Shareholdings Dec 31, 2023* 93,441 shares

Peter Wiklöf

Born in 1966. Board member since 2017. Independent of the company. Independent of significant shareholders. Education and main occupation Master of Laws. Managing Director, Ålandsbanken Abp. Shareholdings Dec 31, 2023* 525 shares

Tomas Lindholm

Born in 1990. Deputy member since 2023. Independent of the company. Not independent of significant shareholders. Tomas Lindholm is employed by Ångfartygs Ab Alfa and Rederi Ab Hildegaard, which each own more than ten per cent of all shares in Viking Line Abp. Education and main occupation

Master of Science in Civil Architectural Engineering, Bachelor of Science in Business and Economics. Technical inspector, Ångfartygs Ab Alfa and Rederi Ab Hildegaard.

Shareholdings Dec 31, 2023* 4,049 shares

Casper Lundqvist

Born in 1982. Deputy Board member since 2020. Independent of the company. Not independent of significant shareholders. Casper Lundqvist is employed by Ångfartygs Ab Alfa and Rederi Ab Hildegaard, which each own more than ten per cent of all shares in Viking Line Abp. Education and main occupation

Accountant, university studies in economics. Head of Accounting, Ångfartygs Ab Alfa and Rederi Ab Hildegaard. Shareholdings Dec 31, 2023*

55,500 shares

Fredrik Vojbacke

Born in 1973. Deputy member since 2023. Independent of the company. Independent of significant shareholders. Education and main occupation Bachelor Degree Program & Master of Business Administration Program, Bachelor Degree Program, University of Macao (China). CEO, Transferator AB. Shareholdings Dec 31, 2023* 500 shares

* Shares in Viking Line Abp as of December 31, 2023, held by the Board member and/or by companies that the person has a controlling interest in.

CEO

The CEO handles the company's day-to-day management in accordance with the Board's instructions and rules and is responsible for ensuring that the Board's decisions are executed. Under the Companies Act, the CEO is also responsible for ensuring that the company's accounting is in compliance with the law and that the management of finances is carried out in a satisfactory manner.

The CEO is appointed and dismissed by the Board of Directors. The terms of his employment relationship including compensation and other benefits are established in a written contract that is approved by the Board in accordance with the compensation policy. The CEO may be elected to the Board, but not as its Chairman.

The CEO of the company is Jan Hanses. The Deputy CEO of the company is Peter Hellgren.

Group Management

In addition to the CEO, the Board also appoints the Deputy CEO and the other members of Group Management. Under the leadership of the CEO, Group Management is responsible for directing the company's operating activities as well as strategic and financial planning. Group Management meets regularly.

Group Management consists of Jan Hanses, Peter Hellgren, Johanna Boijer-Svahnström, Mats Engblom, Henrik Grönvik, Ulf Hagström and Wilhelm Hård af Segerstad.

Members of Group Management

Jan Hanses Born in 1961. Joined the company in 1988. Master of Laws. LL.M. Areas of responsibility CEO since 2014. Shareholdings Dec 31, 2023* 7,005 shares

Peter Hellgren Born in 1967. Joined the company in 1994. University studies in communication. Areas of responsibility Executive Vice President since 2014. Deputy CEO since 2018. Sales and marketing. Shareholdings Dec 31, 2023* 2,125 shares

Johanna Boijer-Svahnström Born in 1965. Joined the company in 1990. Master of Business Administration. Studies in communication. Areas of responsibility Senior Vice President since 2015. Public affairs and external communication, landbased personnel and sustainability. Shareholdings Dec 31, 2023* 2,145 shares

Mats Engblom Born in 1977. Joined the company in 2011. MBA. Areas of responsibility Senior Vice President since 2018. Finance. Shareholdings Dec 31, 2023* 3,793 shares

Henrik Grönvik Born in 1963. Joined the company in 1997. Sea Captain. Areas of responsibility Vessel Manager since 2018. Master. Shareholdings Dec 31, 2023* 525 shares

Corporate governance

Ulf Hagström Born in 1969. Rejoined the company in 2015, earlier employment 1996-2012. Engineer in machinery and energy technology. Areas of responsibility Senior Vice President since 2015. Marine Operations & Newbuildings. Shareholdings Dec 31, 2023* 3,000 shares

Wilhelm Hård af Segerstad Born in 1964. Joined the company in 1984. Areas of responsibility Senior Vice President since 2014. Shipboard commercial operations and shipboard personnel. Shareholdings Dec 31, 2023* 1,675 shares

* Shares in Viking Line Abp as of December 31, 2023, held by that person and/or by companies that the person has a controlling interest in.

Corporate governance

Auditors

The company has one Auditor who is elected at the Annual General Meeting for a term expiring at the end of the next Annual General Meeting. The Auditor examines the company's accounts and financial statements. After completion of this examination, the Board receives a review report, and an Auditor's Report is submitted to the Annual General Meeting.

The company's Regular Auditor is:

The auditing firm PricewaterhouseCoopers Oy with CGR Martin Grandell as principal auditor

The auditor's fees are adopted by the Annual General Meeting. According to the decision in force, fees are paid based on periodic invoices. The Group's auditing expenses amounted to EUR 158,866.87 in 2023 (EUR 134,721.28 in 2022), of which EUR 119,351.76 (EUR 101,213 in 2022) was related to the parent company. The expenses for other services provided by the Group's auditors and their auditing firm were EUR 105,267.73 in 2023 (EUR 50,091.41 in 2022).

The Board performs the duties of an audit committee.

Internal control and risk management

The objective of the internal oversight for which the Board of Directors and the operative management are responsible is to ensure efficient, profitable operations, reliable information and compliance with regulations and business principles. Risk management is an integral element of the Group's controls and oversight of operations.

The Board of Directors continuously monitors the Group's trend of earnings and its financial position by means of the internal reporting system. The internal control system consists of detailed internal accounts, which are reconciled with the business accounts. The Group's Finance Department is responsible for external reporting and works in close cooperation with the Business Control Department, which handles internal reporting, including financial monitoring, analysis and business planning.

The Group has a Treasury Policy, which was adopted by the Board. The policy concerns, among other matters, principles for the Group's liquidity and funding as well as management of financial risks. Operational responsibility for this lies with the Group's Treasury Department. The Group Treasurer compiles a Treasury report for the Board, the CEO and the Group's Senior Vice President of Finance on a regular basis. The scope and frequency of the report are specified in the policy document and include monitoring of the Group's liquidity, financing and risk exposure.

A report on financial risk management is provided in the information contained in the notes to the Group's financial statements. A section on business risks can be found in the Report of the Directors.

Insider management

Viking Line manages insider information and insiders in accordance with the requirements under the EU's Market Abuse Regulation (MAR), the Finnish Securities Market Act, NASDQ Helsinki's insider regulations, the regulations and instructions of the European Securities and Markets Authority and the Finnish Financial Supervisory Authority, and Viking Line's insider instructions.

Viking Line's insider management includes

internal distribution of information about insider issues,
internal training on insider issues,
processing of insider notifications,
establishment and maintenance of insider lists,
monitoring of insider issues and
updating of information published on the Internet.

The information received based on the management's notification requirements and the transactions involving the company's financial instruments carried out by management is examined on a continuous basis. In addition, a comprehensive review is conducted once a year, and a personal print-out of the list of notifications is sent annually to be examined by each member of management.

The Group's CEO is responsible for insider issues at the company. The practical tasks concerning insider management are handled by people designated by that person.

Insider information is published as soon as possible, via a stock exchange release. For someone who has access to insider information, carrying out transactions involving the company's financial instruments is always prohibited. In addition to this general restriction on trading, management and the people who belong to the company's financial reporting group are prohibited from trading the company's financial instruments during a silent period of thirty days before the publication of the Group's financial reports and on the day they are published.

In compliance with MAR requirements, Viking Line publishes information about transactions involving the company's financial instruments carried out by the management and their related parties. This is done in stock exchange releases and a notification submitted to the Finnish Financial Supervisory Authority within three business days of the transaction date at the latest. In this respect, Viking Line's management are considered to be members and deputy members of the Board as well as the CEO.

In preparing for substantial projects, a list of insiders for the project in question is drawn up. The people listed there are to be informed of this and receive information about the obligations that arise from this.

Compensation statement

Compensation statement 2023

Introduction

Viking Line Abp's highest decision-making body is the Annual General Meeting (AGM). The company shall have a compensation policy that describes Viking Line's main compensation principles for the Board of Directors, the CEO and the Deputy CEO. The compensation policy shall be submitted to the AGM at least every four years. The compensation policy was approved by Viking Line's AGM on May 13, 2020. This compensation policy is therefore in effect until the AGM 2024 unless changes are warranted before then.

Compensation to the Board

Fees adopted by the Annual General Meeting are paid as compensation for the Board's work. Reasonable travel expenses are paid as invoiced. The Board's compensation is a monetary payment. The Board has not appointed any committees; instead all duties are performed directly by the Board. The following fees are paid to the Board in accordance with the AGM's decisions:

EUR	2023
Annual fee, Chairman of the Board	28,000
Annual fee, other regular Board members	22,000
Annual fee, deputy Board members	5,000
Fee per meeting attended, Board and deputy members	1,000

For the financial year 2023, a total of EUR 306,000 (EUR 282,000 in 2022) was paid in Board fees. Otherwise, no deviations from the compensation policy were made in either 2023 or 2022.

EUR	Annual fee	Meeting fees	Total
Ben Lundqvist, Chairman of the Board until April 27, 2023	14,000	5,000	19,000
Jakob Johansson, Chairman of the Board starting April 27, 2023	28,000	13,000	41,000
Nils-Erik Eklund, member until April 27, 2023	11,000	5,000	16,000
Christina Dahlblom, member	22,000	13,000	35,000
Ulrica Danielsson, member starting April 27, 2023	22,000	10,000	32,000
Stefan Lundqvist, member	22,000	14,000	36,000
Lars G Nordström, member until April 27, 2023	11,000	2,000	13,000
Andreas Remmer, member starting April 27, 2023	22,000	9,000	31,000
Gert Sviberg, member starting April 27, 2023	22,000	10,000	32,000
Peter Wiklöf, member	22,000	11,000	33,000
Tomas Lindholm, deputy member starting April 27, 2023	5,000	2,000	7,000
Casper Lundqvist, deputy member	5,000	1,000	6,000
Fredrik Vojbacke, deputy member starting April 27, 2023	5,000		5,000
Total	211,000	95,000	306,000

Compensation to the CEO and Deputy CEO

The Board determines compensation and other benefits for the CEO and the Deputy CEO. The CEO and the Deputy CEO are paid a monthly salary, which is determined each year by the Board. The CEO, Jan Hanses, is paid a monthly salary of EUR 27,513 and the following additional benefits in kind: telephone benefits and group life insurance coverage, including insurance for medical expenses. No other deviations from the compensation policy were made in either 2023 or 2022.

The Group has only defined-contribution pension plans. The CEO and the Deputy CEO are subject to public pension terms and the lowest legal retirement age in effect at each point in time.

The CEO has a termination notice period of 8 months. The company's Board is entitled to terminate his contract, after which the CEO receives 8 months of salary from the termination date. The Deputy CEO receives 6 months of salary in the event the company terminates his contract. Otherwise the Group has made no individual agreements on termination-related benefits.

The Group has no incentive scheme or bonus systems.

Compensation to the CEO and Deputy CEO in 2023, EUR	Fixed salary	Total compensation in 2023
CEO	362,986	362,986
Deputy CEO	171,981	171,981
Total	534,967	534,967

Comparative data

Group	2019	2020	2021	2022	2023
Compensation to the Board, EUR M	0.3	0.3	0.3	0.3	0.3
Compensation to the CEO, EUR M	0.3	0.3	0.5	0.3	0.4
Compensation to the Deputy CEO, EUR M	0.2	0.2	0.2	0.2	0.2
Salaries, EUR M	122.2	79.6	75.9	110.5	114.2
Personnel during the year (average number)	2,632	1,640	1,536	2,203	2,227
Operating income, EUR M	17.4	-49.3	32.1	38.3	55.0

During the first quarter of 2022, the company still had furlough schemes in place for land-based and shipboard staff on account of the COVID pandemic.

Further information about compensation for the Group's key individuals in management positions can be found at Vikingline.com and in Note 6.1.4 to the consolidated financial statements.

AI Terminal

Viking Line Abp

3300_10-k_2024-03-15_704cb115-aa9e-436d-93e8-b87c9c2c322e.pdf

Annual Report 2023

Contents

Contents

Financial review

Corporate governance

A look back at the past year – with historically strong earnings

Sales and earnings

Quarterly consolidated income statement

Quarterly consolidated statement of comprehensive income

Service and market

Financing and cash flow

Investments

Board of Directors, Group Management and auditors

Corporate Governance Statement

Non-financial report

Operations

Organization and personnel

Social issues

Respect for human rights

Anti-corruption and bribery

Environment, safety and security

Risk and risk management

Strategic risks

Operational risks

Damage risks

Financial risks

Disclosures under the EU's Taxonomy Regulation

Information about conformity with Taxonomy Regulation

Technical screening criteria

DNSH and minimal social safeguards

Key performance indicators used in the taxonomy

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities

Five-year financial review

Share-related financial ratios

Definitions of financial ratios

Shares and shareholders

Shares

Shareholders

Financial review

Board and top management shareholdings

Trading volume and share price

Events after the balance sheet date

Outlook for the financial year 2024

The Board's proposal on distribution of earnings

Financial review

Sales (EUR M) Operating income (EUR M)

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated cash flow statement

Statement of changes in consolidated equity

Notes to the consolidated financial statements

Financial review

1. Accounting principles

1.1 Company information

1.2. General principles

1.3 Estimates and judgements

1.4 Risks and liquidity

1.5 Principles of consolidation

1.6 Items in foreign currency

1.7 Application of renewed or amended IFRS reporting standards

1.8 Transition to implementing IFRS 17

Financial review

Consolidated balance sheet January 1, 2022

ASSETS

2. Operating income

2.1 Segment information

Financial review

2.2 Sales

2.3 Other operating revenue

2.4 Goods and services

2.5 Compensation to employees

2.6 Depreciation, amortization and impairment losses

2.7 Other operating expenses

2.7.1 Compensation to the auditors